ADB, BIM Wind sign US$107 million financing package to support wind energy in Viet Nam

Wednesday, Dec 21, 2022 13:26

This project is a crucial step toward Viet Nam's resilience and ongoing recovery by further expanding the country's renewable energy mix and contributing to its net-zero targets. — Photo BIM Wind

The Asian Development Bank (ADB) signed a US$107 million financing project with BIM Wind Power Joint Stock Company (BIM Wind) to support the operation of an 88 MW wind farm in Ninh Thuan Province, Viet Nam.

The power plant will help Viet Nam reach its clean energy and climate action targets by offsetting about 215,000 tonnes of carbon dioxide annually.

This innovative $107 million project financing is arranged and syndicated by ADB as mandated lead arranger and bookrunner, and comprises $25 million from ADB’s ordinary capital resources, $25 million from Japan International Cooperation Agency, $13 million from Hong Kong Mortgage Corporation Limited, $17 million from Sumitomo Mitsui Banking Corporation, $18 million from ING Bank, and $9 million from Cathay United Bank.

“Energy demand in Viet Nam has grown rapidly even during the pandemic, and it is crucial that this demand be met through clean energy that will drive sustainable economic growth,” said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani. “This project is a crucial step toward Viet Nam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets.”

ADB will also administer an additional $5 million grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund to help de-risk the investment. Specifically, the grant will be used for initiatives to mitigate environmental and social safeguard risks such as reducing shadow flicker impact on residents in the project locality and the preservation of wildlife habitats.

“We are very honoured to receive financing from a leading development finance institution in Asia as well as international commercial banks. We have worked very hard with ADB and other lenders to meet international standards, especially in regards to Environment, Social, and Governance,” said BIM Wind JSC CEO Doan Quoc Huy. “The success of this transaction supports Viet Nam’s transition to a low carbon economy. We continue to pursue our mission toward the sustainable development of clean energy in Viet Nam."

BIM Wind is jointly owned by ACEN Corporation through its subsidiary, ACEN Vietnam Investments Pte Ltd and the BIM Group through its subsidiary, BIM Energy Holding Corporation (BIMEH). ACEN and BIM Group have been developing renewable energy projects since 2019. — VNS

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