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

ICBC contribution to $148.8 million to syndicated B loan for 257MW Phú Yên Hoà Hội Photovoltaic Power Generation Project 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 Record 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.