Out-Law News | 02 Jun 2021 | 2:38 am | 1 min. read
The Asian Development Bank (ADB) has signed a $116 million green loan with three local firms to finance the construction and operation of three 48 megawatts (MW) wind farms in Quang Tri province, Vietnam.
The project will increase Vietnam’s wind power capacity by 30% which will help Vietnam meet the rapidly growing demand for energy, said a statement.
It is part of a $173m green loan project financing package arranged and syndicated by ADB. It is ADB’s first financing of a wind power project in Vietnam and is certified by the Climate Bonds Initiative. The loan includes a $35m A loan directly funded by ADB and an $81m syndicated B loan.
The three firms are Lien Lap Wind Power Joint Stock Company (Lien Lap), Phong Huy Wind Power Joint Stock Company (Phong Huy), and Phong Nguyen Wind Power Joint Stock Company (Phong Nguyen), all of which are owned by Power Construction Joint Stock Company No. 1 (PCC1) and RENOVA.
Once operational, it will generate 422 gigawatt-hours of electricity and avoid an average of 162,430 tons of CO2 emissions each year.
Climate Bonds Initiative is an international organisation working solely to mobilise the largest capital market for climate change solutions.
James Harris of Pinsent Masons, the law firm behind Out-Law, said: “This is a significant milestone for ADB, for the Climate Bonds Initiative and for Vietnam. For some time, the renewable energy market in Vietnam has been one of the bright spots for private sector opportunity within ASEAN and this kind of achievement bodes well for the future. Vietnam is definitely going to stay on everybody’s radar with announcements such as this.”