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B.Grimm Power Plc, Thailand’s power generation firm has reached a US$186-million syndicated loan deal with Asian Development Bank (ADB). ADB is a key lender to finance its solar farm in Vietnam which also is one of the largest solar power generation facilities in Southeast Asia.
ADB will support a 257 MW solar power plant in Phu Yen province on the south-central coast. It is the first green loan in the Asia-Pacific region certified by the Climate Bonds Initiative which is part of an independent environmental movement.
ADB granted a loan of $27.9 million whereas five commercial banks which included Bangkok Bank, Kasikornbank, Kiatnakin Bank, Industrial and Commercial Bank of China (ICBC) and Standard Chartered Bank provided a total of $148.8 million.Leading Asia’s Private Infrastructure Fund (LEAP) also lended $9.3 million.
B.Grimm chairman Harald Link stated that “ The loan agreement marks another successful milestone for the company.”
Under a 20-year contract at a feed-in tariff of 9.35 US cents per kilowatt-hour the Phu Yen solar farm has already started supplying electricity to Electricity of Vietnam (EVN).
“The green loan showed that the company is once again pioneering a new form of financial innovation that focuses on the development of clean energy.”, B.Grimm chief executive Preeyanart Soontornwata said.
In 2018, the company became Thailand’s first real-sector corporation to issue 5 billion baht in green bonds, with five-year and seven-year maturities at 3.6% interest, Mrs Preeyanart added.
“ADB is committed to supporting B.Grimm in its long-term expansion into Vietnam and its important work in renewable energy”, Jackie B Surtani, ADB’s director of the infrastructure finance division for East Asia, Southeast Asia and the Pacific quoted.
“This project will support the rapid development of solar power capacity in Vietnam, advance the country’s low-carbon growth goals, and, we hope, catalyse further commercial bank financing for renewable energy,” Mr Surtani concluded.