BIM Group, ADB sign $107 million financing package to support clean energy in Viet Nam
Posted Date December 20, 2022
BIM Group’s first Wind Farm started commercial operation in Ninh Thuan province on September 30th, 2021 that transformed the region into the largest salt production and renewable energy complex in Vietnam covering an area of 2,500 hectares with a total investment of VND12 trillion. (Photo: TS)
HA NOI, VIET NAM (20th December 2022) — The Asian Development Bank (ADB) signed a $107 million financing package with BIM Wind Power Joint Stock Company (a subsidiary of BIM Group) to support the operation of an 88-megawatt (MW) wind farm in Ninh Thuan province, Viet Nam. The power plant will help Viet Nam reach its clean energy and climate action targets by offsetting about 215,000 tons of carbon dioxide annually.
The financing comprises $25 million from ADB’s ordinary capital resources, $82 million in parallel loans The financing package was arranged by ADB as Mandated Lead Arranger and Bookrunner. The parallel loans are comprised of $25 million loan from Japan International Cooperation Agency, $13 million from Hong Kong Mortgage Corporation Limited; $18 million from ING Bank; $17 million from Sumitomo Mitsui Banking Corporation; and $9 million from Cathay United Bank. Supporting Vietnam's transition to a green economy is one of ADB's two main strategies for Vietnam for 2023–2026. On 14 Dec 2022, Vietnam was the 3rd country with which a Just Energy Transition Partnership (JETP) has been agreed. JETP is an initiative by a number of developed countries and financial institutions. By doing this, Vietnam is committing to solid steps to implement the green transition process.
“We are very honored to receive financing from a leading development finance institutions in Asia as well as international commercial banks. We have worked very hard with ADB and other lenders to meet international standards especially in regard to Environment, Social, and Governance.” said BIM Group’s vice chairman and CEO Doan Quoc Huy. “Currently, Vietnam is facing the dual challenge of meeting its rapidly growing energy demand while implementing decarbonizing process. Vietnam's energy demand is continuously increasing at a rate higher than economic growth, Vietnam's carbonization is higher than that of other countries in the ASEAN. Facing that challenge and receiving support from governmental bodies and partners like ADB, we will continue our green mission contributing to the country's sustainable development strategy."
BIMEH is top 5 renewable platforms in Vietnam with gross operation capacity of more than 800MW. (Photo: TS)
“Energy demand in Viet Nam has grown rapidly even during the pandemic, and it is crucial that this demand be met through clean energy that will drive sustainable economic growth,” said ADB Private Sector Operations Department Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific Jackie B. Surtani. “This project is a crucial step toward Viet Nam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets.”
In addition to a $107 million financing package, BIM Wind Power JSC has also been granted a 5 million grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund. The grant will be used for initiatives related to environmental and social safeguards.
“We value ADB’s and other lenders’ extensive experience and expertise drawn from their global portfolio of energy projects. This 15-year long-term funding comes as a stamp of approval to our relentless efforts to pursue sustainable development including green and sustainable financing” said Ms Ha Bui, BIM Group’s CFO.
BIM Wind project is jointly owned 70% by BIM Group Joint Stock Company (“BIM Group”) via its energy platform BIM Energy Holding Corporation (“BIMEH”) and 30% by ACEN Vietnam Investments Pte. Ltd. (ACEN). BIMEH is top 5 renewable platforms in Vietnam with gross operation capacity of more than 800MW. As our commitment to green and sustainable development, BIM Wind Power JSC has committed to applying International Social and Environment Safeguards Policy with the focus on preserving wildlife surroundings, improving livelihoods and gender equality, as well as local socio-economic development.
About BIM Group
Established in 1994, BIM Group is currently a leading private conglomerate in Vietnam. With a long-term strategic vision, BIM Group focuses focusing on 4 main activities including real estate, renewable energy, aquaculture & foods, consumer & lifestyle.
Pioneering in investment fields which are closely associated with the local community, BIM Group develops high-quality products and services that are good for the environment contributing to promoting Vietnam's sustainable growth.
In September 2021, the Group's first wind power plant was put into commercial operation, officially completing the first phase of a green economic complex including salt and renewable energy in Quan The village, Ninh Thuan province. The complex is carried out in the area of salt fields in which the overhead area is the BIM Wind Power Plant with a capacity of 88MW, below are the 405MWp solar power plants and the salt field of the Quan The industrial salt and export economic zone project with capacity of 350 thousand tons per year.
About BIM Wind
BIM Wind is jointly owned 70% by BIM Group Joint Stock Company (“BIM Group”) via its energy platform BIM Energy Holding Corporation (“BIMEH”) and 30% by ACEN Vietnam Investments Pte. Ltd. (ACEN). BIMEH is top 5 renewable platforms in Vietnam with gross operation capacity of more than 800MW. ACEN is a subsidiary of Ayala Corporation, one of the oldest, largest, and most diversified conglomerates in the Philippines.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
ADB is an active partner in Vietnam's development community, working closely with all relevant development partners, including the United Nations, World Bank, IMF and other bilateral organizations. ADB’s Country Partnership Strategies (CPS) for Vietnam 2023–2026 will focus on fostering inclusive, green, and private sector-led growth; and building the foundation for achieving the goal of becoming an upper middle-income country (UMIC) by 2030. The strategy has two main pillars. The first pillar focuses on supporting Viet Nam’s transition to a green economy. The second pillar concentrates on harnessing the country’s private sector and promoting social equity.
Media inquiries please contact
Mr. Xuan Bach Doan
Mobile: +84986 063 535