ICBC contributes $29.76 million to syndicated green loan for 257MW Phú Yên Hoà Hội Photovoltaic Power Generation Project (Linked to Project ID#88700)

On October 9, 2020, the Asian Development Bank (ADB) and Phú Yên TTP Joint Stock Company (Phú Yên JSC) — a special purpose vehicle and joint venture — signed a $186 million syndicated debt financing agreement for the 257MW Phú Yên Hoà Hội Photovoltaic Power Generation Project. The financing package consisted of a $27.9 million loan funded by ADB, a $148.8 million syndicated B loan financed by a group of commercial banks (including ICBC) with ADB as lender of record (as captured via Project ID#88903), and a $9.3 million loan from Leading Asia’s Private Infrastructure Fund (LEAP). The syndicated loan was the first green B loan in Asia and the Pacific to be certified by the Climate Bonds Initiative and one of the most significant such loans yet mobilized in Viet Nam. Participating commercial banks included Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China (ICBC), and Standard Chartered Bank. The purpose of the project was to develop and operate a 257 megawatt (MW) solar power plant in Hoà Hội, Phú Yên Province, Viet Nam through the country’s first certified green loan. The project was expected to deliver electricity to Quang Ngai and Nha Trang cities and surrounding areas, optimize the power structure of Vietnam, ease the power shortage problem in southern Vietnam, and promote economic and social development. It was also expected to reduce 123,000 tons of carbon dioxide annually. The project site is located in Hoà Hội Town, Fuhua County, Phú Yên Province, Vietnam. The Shanxi Institute of Energy China Planning and Design Group was the contractor overseeing the design, while Anhui Electrical Power Construction No.1 Company and Anhui Electric Power Construction No.2 Engineering Company (AEPC2) were in charge of construction, which began on November 17, 2018. The project reached the commercial operation stage in April 2020. The Phú Yên solar farm subsequently started supplying electricity to Electricity of Vietnam (EVN) under a 20-year contract at a feed-in tariff of 9.35 US cents per kilowatt-hour.

Additional details

1. Phu Yen JSC is a special purpose vehicle that is owned by B.Grimm Power Public Company Limited and Truong Thanh Viet Nam Group Joint Stock Company (TTVN). B.Grimm holds an 80% share of the company. 2. This project is also sometimes referred to as the Phu Yen photovoltaic plant, or Fuan, or Fu Huahui. 3. Green loans are used to fund new or existing projects that deliver environmental or climate-related benefits. 4. Shanxi Institute of Energy China Planning and Design Group is a subsidiary of CEEC. 5. Vietnam Phú Yên Hoà Hội 257MW photovoltaic project is reportedly the largest single photovoltaic power station project in Viet Nam and one of the largest in Southeast Asia. 6. Project ID#88700 captures a 50MW extension of this project.

Number of official sources

4

Number of total sources

9