The Asian Development Bank (ADB) signed a $107 million financing package with the BIM Wind Power Joint Stock Company, a subsidiary of the BIM Group, on December 20, to support the operation of an 88 MW wind farm in south-central Ninh Thuan province.

The wind farm will help Vietnam 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 and $82 million in parallel loans. The package was arranged by ADB as Mandated Lead Arranger and Bookrunner. The parallel loans are comprised of $25 million from the Japan International Cooperation Agency, $13 million from the Hong Kong Mortgage Corporation Limited, $18 million from ING Bank, $17 million from the 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 the country in the 2023-2026 period. On December 14, Vietnam was the third country with which a Just Energy Transition Partnership (JETP) was agreed. The JETP is an initiative by a number of developed countries and financial institutions. By doing so, Vietnam commits to solid steps to implement the green transition process towards the 2050 Net Zero goals.

“We are honored to receive financing from leading development finance institutions in Asia as well as international commercial banks,” said Mr. Doan Quoc Huy, Vice Chairman and CEO of the BIM Group. “We have worked very hard with ADB and other lenders to meet international standards, especially in regard to environment, social, and governance (ESG) criteria.”

Vietnam is now facing the dual challenge of meeting its rapidly-growing energy needs while implementing a decarbonizing process. Its energy needs are continually increasing at a rate higher than its economic growth, so its carbonization is higher than in other countries in ASEAN. “In facing that challenge and receiving support from government bodies and partners like ADB, we will continue our green mission of contributing to the country’s sustainable development strategy,” Mr. Huy said.

“Energy demand in Vietnam has grown rapidly, even during the pandemic, and it is crucial that this is 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 towards Vietnam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets.”

In addition to the $107 million financing package, BIM Wind Power has also received a $5 million grant from the Goldman Sachs and Bloomberg Philanthropies-backed Climate Innovation and Development Fund. The grant will be used for initiatives relating to environmental and social safeguards.

“We value ADB’s and the other lenders’ extensive experience and expertise drawn from their global portfolio of energy projects,” said Ms. Ha Bui, CFO of the BIM Group. “This 15-year long-term funding comes as a stamp of approval for our relentless efforts to pursue sustainable development, including green and sustainable financing.”

Seventy per cent of BIM Wind Power’s project is owned by the BIM Group via its energy platform BIM Energy Holding Corporation (BIMEH), while 30 per cent is held by ACEN Vietnam Investments Pte. Ltd. (ACEN). BIMEH is one of the top 5 renewable platforms in Vietnam, with gross operational capacity of more than 800 MW.

As part of the BIM Group’s commitment to green and sustainable development, BIM Wind Power has committed to applying the International Social and Environment Safeguards Policy, with a focus on preserving surrounding wildlife, improving livelihoods and gender equality, and boosting local socioeconomic development.