Vietnam’s first certified green loan for largest single operating solar plant in the country

LAW FIRMS: Chandler MHM, DFDL, Frasers Law Company, Baker McKenzie, Clifford Chance

LAWYERS: Joseph Tisuthiwongse, Tip-apa Limvichai (Chandler MHM), Hans Menski, Philip Sealey (Clifford Chance),Vit Vatanayothin (Baker McKenzie)

JURISDICTION: Vietnam, Thailand

PRACTICE AREAS: Banking and finance

INDUSTRY SECTORS: Energy and infrastructure

Vietnam’s first certified green loan for the development and operation of a solar power plant in Hoa Hoi, Vietnam is our deal of the month for November.

The $186 million financing for this project was aided by Chandler MHM, DFDL, Frasers Law Company, Baker McKenzie and Clifford Chance.  

The 257MW plant will be the largest single operating solar power operation in Vietnam and one of the largest in Southeast Asia. It is being jointly developed by Vietnamese conglomerate Truong Thanh Viet Nam Group Joint Stock Company (JSC) and Phu Yen JSC, which is a subsidiary of Thai private power supplier, B Grimm Power.

The syndicated loan is the first green B loan in Asia to be certified by the Climate Bonds Initiative, an international, investor-focused non-profit focused on mobilising the bond market for climate change solutions.

The total financing comprises an Asian Development Bank (ADB) loan of $27.9 million, a syndicated loan of $149 million funded by various commercial banks with ADB as the lender of record, and a $9.3 million loan from the Leading Asia’s Private Infrastructure Fund (LEAP). The commercial banks that participated were Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commerce Bank of China and Standard Chartered Bank.