The Asian Development Bank (ADB) has doled out a $160.5 million loan to Dau Tieng Tay Ninh Energy Joint Stock Company to support its B.Grimm Vietnam solar power project, according to a disclosure.
B.Grimm Power is a subsidiary of Thailand’s 140-year old conglomerate B.Grimm Group. It is developing one of Vietnam’s first independent power producer (IPP) renewable energy projects in collaboration with Dau Tieng Tay Ninh Energy.
The financing package comprises a B-Loan of $128.00 million, a loan of $24 million from leading Asia’s Private Infrastructure Fund (LEAP), and a loan of $8.00 million from ordinary capital resources.
“Less than 1% of Vietnam’s electricity capacity comes from wind and solar energy and rapid scaling up of Vietnam’s solar capacity will demonstrate to the Government of Vietnam that variable renewable energy capacity can help to meet the country’s rapidly growing demand for energy,” ADB said in the disclosure.
Last year, ADB provided a $186 million loan to renewable energy firm Phu Yen TTP Joint Stock Company to develop a 257 megawatt (MW) solar power plant in southern Vietnam.
Phu Yen TTP is a joint venture set up by B.Grimm Power Public Company Limited and Vietnamese diversified group Truong Thanh Vietnam. The Thai listed energy major acquired an 80 per cent stake in Phu Yen TTP for $35.2 million in 2018.
Earlier, the lender and other stakeholders provided a $37.8-million loan for Vietnamese renewable energy company TTC Energy. The financing for the Gulf Solar Power Project will assist TTC Energy in developing and operating a 50-MW photovoltaic solar power plant in Tay Ninh province, southern Vietnam.
The LEAP was established in March 2016. It is an infrastructure co-financing fund, expected to leverage and complement ADB’s existing nonsovereign platform to fill financing gaps and increase access to finance for infrastructure projects in the region. Japan International Cooperation Agency (JICA) has made a contribution to the fund.
Meanwhile, the A/B Loan allows ADB to introduce new financing sources to its clients, mobilising more funds for development projects.