Hoa Hoi solar power plant in Vietnam secures $186m loan from ADB and others

The Asian Development Bank (ADB) has signed a $186 million loan agreement with Phu Yen TTP Joint Stock Company (Phu Yen JSC) for the operating 257MW Hoa Hoi solar power plant in Vietnam’s Phu Yen Province.

Phu Yen JSC is a joint venture of Thai power producer B.Grimm Power Public Company and Truong Thanh Viet Nam Group Joint Stock Company (TTVN).

Developed by the joint venture with an investment of around $211 million, the Hoa Hoi solar power plant was officially inaugurated in June 2019, less than a year after its construction began in November 2018.

The Vietnamese solar power plant’s financing includes a loan of $27.9 million funded by ADB, a $148.8 million syndicated loan (B loan) funded by commercial banks with lender of record being ADB, and a $9.3 million loan coming from Leading Asia’s Private Infrastructure Fund (LEAP).

Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Standard Chartered Bank, and Industrial and Commercial Bank of China are the participating commercial banks.

Jackie B. Surtani – Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific at ADB Private Sector Operations Department said: “ADB is committed to supporting B.Grimm, one of our most valued clients, with its long-term expansion into VietNam and its important work in renewable energy. We’re also excited to work for the first time with TTVN.

“This project will support the rapid development of solar power capacity in Viet Nam, advance the country’s low-carbon growth goals, and, we hope, catalyze further commercial bank financing for renewable energy.”

The Hoa Hoi solar power plant is claimed to be the largest single solar power plant to be operating in Vietnam and also among the largest in Southeast Asia. It is estimated to offset 123,000 tons of carbon dioxide annually.

The electricity generated from the Hoa Hoi solar project is supplied to Quang Ngai and Nha Trang cities, and also neighboring areas in a region that is becoming one of the key tourist centers in Vietnam.

Preeyanart Soontornwata – President of B.Grimm Power said: “This transaction will support the development of clean and sustainable energy in Viet Nam and help promote the green loan market in Southeast Asia.

“This project is a further demonstration of B.Grimm Power adopting international best practices, and this landmark green transaction is proof of our focus on doing business sustainably. We would like to express our sincere appreciation to ADB for their leadership role in the transaction, and to our B loan lenders whose invaluable support builds on our long-standing relationships forged over multiple transactions.”