BCG Gaia secures $77.5mln loan from Singaporean bank

The BCG Gaia Joint Stock Company, a solar power joint venture between  BCG Energy (a member of the Bamboo Capital Group) and Semcorp Energy Vietnam, has secured a loan of $77.5 million from DBS Bank Limited (DBS) in Singapore.

The loan bears a very good interest rate and a reasonably long term, making it suitable for the development roadmap of solar energy projects. BCG Gaia will use the funds to strengthen its financial structure, significantly lower the investment interest rate bracket for the two solar power field projects it owns, and improve its competitiveness with other enterprises in the market.

Capital mobilization has been difficult for most businesses in the context of recent fluctuations in international and domestic financial markets. The $77.5 million loan from DBS expresses the confidence of international financial institutions in BCG Gaia’s business platform and the healthy credit profile of its projects.

Previously, at the end of March, BCG Energy attracted major attention in the market when a subsidiary of the joint venture between BCG Energy and Singapore’s SP Group secured a syndicated loan of $31.5 million from three Singaporean banks: DBS, the Overseas Chinese Banking Corporation (OCBC), and the United Overseas Bank Limited (UOB). BCG Energy said the joint venture has been granted a credit line of up to $50 million by the Singaporean banks, with the parties still in the process of negotiating disbursement of the remainder.

“The recently-approved Power Development Plan VIII shows the government’s commitment and determination to transition to renewable energy sources,” said Ms. Pham Nguyen Ngoc Thuong, CEO and CFO of BCG Energy. “This is also an important legal basis for businesses to implement new renewable energy projects in the future, creating favorable conditions for mobilizing a huge source of ‘green credit’ from credit institutions and financial institutions at home and abroad.”

“BCG Energy will take advantage of the opportunity from the Power Development Plan VIII to continue working with reputable organizations to mobilize resources to develop more wind and solar power projects and actively contribute to Vietnam’s clean energy transition.”