Clifford Chance

Clifford Chance advises Asian Development Bank on Vietnam's first certified green loan for the country's largest single operating solar power plant

Leading international law firm Clifford Chance has advised the Asian Development Bank (ADB) on the international aspects of the US$186 million financing for the development and operation of a 257 megawatt (MW) solar power plant in Hoa Hoi, Phu Yen Province, Vietnam, the country's largest single operating solar power plant and one of the largest in Southeast Asia.

The financing comprises a US$27.9 million loan funded by ADB, a US$148.8 million syndicated loan (B loan) funded by a group of commercial banks with ADB as lender of record and a US$9.3 million loan from Leading Asia’s Private Infrastructure Fund (LEAP). LEAP was established in 2016 and acts as an infrastructure co-financing fund to fill financing gaps, increasing access to finance for infrastructure projects in Asia by leveraging ADB's existing non-sovereign platform.

The power plant will be developed by Phu Yen JSC, which is owned by B.Grimm Power, one of Thailand’s largest private power producers, and Truong Thanh Viet Nam Group JSC. It is expected to offset 123,000 tonnes of carbon dioxide annually, and will deliver electricity to Quang Ngai and Nha Trang, as well as the surrounding areas in Vietnam's rapidly developing South Central Coast region.

Partner Hans Menski and Head of Renewables for Asia Pacific Philip Sealey co-led a cross-border team which included senior associate Dominik Kepinski and trainees Amelia Hirst and Emma Durrell. Partner Paul Landless, senior associate Miles Binney and associate Yaru Chia advised on hedging matters. Frasers Law Company acted as local counsel in Vietnam and Chandler MHM acted as local counsel in Thailand.

Hans commented, "We are proud to bring our experience in working on some of the most complex renewable transactions around the world to the region. This innovative transaction is reflective of robust investor interest in renewable power in Southeast Asia. The team worked collaboratively with all stakeholders to structure a bankable financing that can serve as a benchmark for other large-scale renewables projects in Vietnam".

Clifford Chance regularly advises cutting edge renewable energy companies on their market leading projects around the world including Taiwan's landmark Formosa 1 and Formosa 2 offshore wind farms, Iberdrola on its Swedish offshore wind power partnership, Spain's Cabrera solar project, one of the largest solar parks in the country, and Qatar's Al Kharsaah solar project.