B.Grimm Power, one of Thailand’s largest private power producers, has secured a green loan from the Asian Development Bank (ADB) to develop a solar power project in Vietnam.

The project is the largest single operating solar power plant in Vietnam and one of the largest in Southeast Asia.

The project will be developed by Phu Yen JSC, a subsidiary of B. Grimm.

The plant will remove 123,000 tons of carbon dioxide annually and will deliver electricity to Quang Ngai and Nha Trang cities, as well as surrounding areas in a region that are emerging as one of Vietnam’s key tourist centers.

The country’s first certified green loan, valued at $186 million, will be used by Phu Yen JSC to develop a 257MW solar project in Hoa Hoi, Phu Yen Province, Vietnam.

The financing comprises a $27.9 million loan funded by ADB, a $148.8 million syndicated loan (B loan) funded by commercial banks with ADB as lender of record, and a $9.3 million loan from Leading Asia’s Private Infrastructure Fund (LEAP).

The syndicated loan is the first green B loan in Asia and the Pacific to be certified by the Climate Bonds Initiative, and one of the largest such loans yet mobilised in Vietnam.

Participating commercial banks include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China, and Standard Chartered Bank.

Infrastructure finance division director for East Asia, Southeast Asia, and the Pacific at ADB’s private sector operations department Jackie B. Surtani, said: “ADB is committed to supporting B.Grimm, one of our most valued clients, with its long-term expansion into Vietnam and its important work in renewable energy. We’re also excited to work for the first time with TTVN.

“This project will support the rapid development of solar power capacity in Vietnam, advance the country’s low-carbon growth goals, and, we hope, catalyze further commercial bank financing for renewable energy.”

B.Grimm Power president Preeyanart Soontornwata, adds: “This transaction will support the development of clean and sustainable energy in Vietnam and help promote the green loan market in Southeast Asia.”