The Vietnam’s first certified green loan has been signed

Thứ tư, 14/10/2020 | 15:05 GMT+7
The Asian Development Bank (ADB) and Phu Yen TTP Joint Stock Company (Phu Yen Joint Stock Company) just have signed a loan of 186 million USD for developing and operating Hoa Hoi solar power project with a capacity of 257 MWp in Hoa Hoi commune, Phu Hoa district, Phu Yen province, Vietnam through the country’s first certified green loan.
The Vietnam’s first certified green  loan has been signed
Illustrative image (Source: Internet)

Phu Yen JSC is owned by B.Grimm Power Company Limited and Vietnam Truong Thanh Group Joint Stock Company (TTVN).
 
This finance includes ADB loan of $ 27.9 million, syndicated loan (Category B loan) of $ 148.8 million funded by the commercial banks with ADB as the Official Lender, and a loan of $ 9.3 million from Leading Asia Private Infrastructure Fund (LEAP).
 
This Category B loan is the first green loan in Asia and the Pacific to be certified by the Climate Bond Initiative, and one of the largest such Category B loans yet mobilized in Vietnam so far.
 
The participating commercial banks include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, China Industrial and Commercial Bank, and Standard Chartered Bank.
 
The Green loans are used to finance new or existing projects that bring the environmental or the climate benefits.
 
This project will support the rapid increase of solar power capacity in Vietnam, speed up low carbon growth targets, and at the same time, create momentum for greater fund from the commercial banks for the renewable energy sector.
 
This is the largest operating solar power project in Vietnam, one of the largest projects in Southeast Asia and will help reduce emissions by 123,000 tons of carbon dioxide per year.
VietnamEnergy