The Asian Development Bank (ADB) signed a $107 million project financing with BIM Wind Power Joint Stock Company (BIM Wind) to support the development of an 88-megawatt (MW) wind farm in Vietnam’s Ninh Thuan province.
The plant will help Vietnam meet its clean energy and climate action goals by offsetting some 215,000 tons of carbon dioxide per year.
This innovative $107 million funding project has been organized and syndicated by ADB as lead organizer and bookrunner, and comprises $25 million from ADB’s regular capital resources, $25 million from the Japan Agency for International Cooperation, $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 Vietnam has grown rapidly even during the pandemic, and it is crucial that this demand is met by clean energy that drives sustainable economic growth,” said the Director of the Infrastructure Finance Division for East Asia, Southeast Asia. and Pacific of the ADB Private Sector Operations Department, Jackie B. Surtani.
“This project is a crucial step towards Vietnam’s ongoing resilience and recovery, further expanding the country’s renewable energy mix and contributing to its net-zero energy goals.”
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The ADB will also administer an additional $5 million grant from the Climate Innovation and Development Fund, backed by Goldman Sachs and Bloomberg Philanthropies, to help reduce investment risk.
Specifically, the grant will be used for initiatives to mitigate environmental and social safeguard risks, such as reducing the impact of shadow flicker on residents of the project location and preserving wildlife habitat.
“We are very honored to receive funding from a leading Asian development finance institution as well as international commercial banks. We have worked very hard with the ADB and other lenders to meet international standards, especially on environmental, social and governance issues,” said Doan Quoc Huy, CEO of BIM Wind JSC.
“The success of this operation supports Vietnam’s transition to a low carbon economy. We continue to pursue our mission towards the sustainable development of clean energy in Vietnam.”
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. ACEN has 3,700 MW of attributable power capacity in operation and under construction in Australia, India, Indonesia, the Philippines and Vietnam, with a renewable share of 93% among the highest in the region.
ACEN is a subsidiary of Ayala Corporation, one of the largest and most diversified conglomerates in the Philippines.
BIM Group is one of the largest private conglomerates in Vietnam, with a long history of 30 years and interests in real estate, hospitality, agriculture, aquaculture, renewable energy and consumer services.
BIMEH is among the top five renewable energy platforms in Vietnam, with a gross operating capacity of close to 800 MW.
