Bim Group and ADB sign $107 million clean energy package
The Asian Development Bank (ADB) signed a $107 million financial package with BIM Wind Power JSC, a subsidiary of BIM Group, to support the operation of an 88MW wind farm in Ninh Thuan province on Vietnam’s southcentral coast.
The power plant is aimed to help Vietnam reach its clean energy and climate action targets by offsetting about 215,000 tonnes of carbon dioxide annually.
The financing comprises $25 million from ADB’s ordinary capital resources and $82 million in parallel loans. It was arranged by ADB as the mandated lead arranger and book runner.
The parallel loans are comprised of a $25 million loan from the Japan International Cooperation Agency, $13 million from Hong Kong Mortgage Corporation Ltd., $18 million from ING Bank, $17 million from the Sumitomo Mitsui Banking Corporation, and $9 million from Cathay United Bank.
Supporting the nation’s transition to a green economy is one of ADB’s two main strategies for Vietnam in the 2023-2026 period.
On December 14, Vietnam became the third country to launch the Just Energy Transition Partnership – an initiative that a number of developed countries and financial institutions are engaged in. By doing this, Vietnam is solidly committing to implementing the green transition process towards achieving its 2050 net-zero goals.
BIM Group’s vice chairman and CEO Doan Quoc Huy said, “We are very honoured to receive financing from a leading financial development institution in Asia as well as international commercial banks. We have worked very hard with the ADB and other lenders to meet international standards, especially in regard to environmental, social, and corporate governance.”
Huy continued, “Currently, Vietnam is facing the dual challenge of meeting its rapidly growing energy demand while implementing its decarbonisation process. The country’s energy demand is continuously increasing at a rate higher than economic growth.”
“Vietnam’s carbonisation is higher than in other ASEAN countries. Facing that challenge with support from governmental bodies and partners like the ADB, we will continue our green mission of contributing to the country’s sustainable development,” he concluded.
Jackie B. Surtani, ADB Private Sector Operations Department, Infrastructure Finance Division director for East Asia, Southeast Asia, and the Pacific stated, “Energy demand in Vietnam has grown rapidly even during the pandemic, and it is crucial that this demand is met through clean energy that will drive sustainable economic growth.”
“This project is a crucial step toward Vietnam’s resilience and ongoing recovery by further expanding the country’s renewable energy mix and contributing to its net-zero targets,” added Surtani.
In addition to the $107 million financing package, BIM Wind Power JSC has also been granted $5 million 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.
Ha Bui, BIM Group’s CFO said, “We value the 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 for our relentless efforts to pursue sustainable development, including green and sustainable financing.”
Established in 1994, BIM Group is a leading private conglomerate in Vietnam. With a long-term strategic vision, the group focuses on four main activities including real estate, renewable energy, aquaculture and foods, and consumer and lifestyle goods.
BIM Wind is jointly owned by BIM Group JSC – holding a 70 per cent stake via its energy platform BIM Energy Holding Corporation (BIMEH) – and ACEN Vietnam Investments Pte., Ltd. (ACEN) – holding the remaining 30 per cent stake.
BIMEH is among the top 5 renewable platforms in Vietnam with a gross operational capacity exceeding 800MW, meanwhile, ACEN is a subsidiary of the Ayala Corporation – one of the largest and most diversified conglomerates in the Philippines.