ADB agrees $13.8-million loan with GreenYellow

September 11, 2023 | 18:35
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The Asian Development Bank (ADB) has inked a $13.8 million loan agreement with GreenYellow Smart Solutions Vietnam to support the installation of rooftop photovoltaic (PV) solar systems in Vietnam.
ADB agrees $13.8-million loan with GreenYellow

The funding will help build and operate solar PV systems on the roofs of commercial and industrial buildings across the nation. The financing package consists of a $3 million A loan from ADB's ordinary capital resources and a $10.8 million parallel loans from Dutch development bank FMO's climate fund and France's Societe Generale. ADB serves as mandated lead arranger.

Additionally, a $3 million grant will be awarded by the ADB-managed Climate Innovation and Development Fund. The grant will assist in overcoming two significant obstacles to financing solar assets with a long economic life in Vietnam, namely the lack of long-term VND funding at fixed interest rates and the potential volatility of the exchange rate with the US dollar.

“ADB is increasingly focused on mobilising private capital to finance renewable energy projects that the Asia Pacific region urgently needs,” said ADB's director general for Private Sector Operations Suzanne Gaboury.

“Solar PV rooftop offers an efficient way for Vietnam to deploy substantial amounts of additional renewable energy capacity while providing reliable, low-cost energy to consumers, which helps to entice and retain businesses and enhance Vietnam’s global competitiveness,” added Gaboury.

This is ADB’s first financing of a solar PV rooftop portfolio for the commercial and industrial segment in Vietnam. Rooftop solar is an emerging form of renewable energy supply in the country, and its adoption in this sector has been hindered by high upfront costs and limited financing channels.

With a planned total installed capacity of up to 32.3MW at its peak, this project is set to increase clean energy supply to the sector by at least 31.5 gigawatt-hours annually, reducing 15,530 tonnes of CO2 emissions by 2025.

“Embedded within our core business is a profound commitment to development impact and our collaboration with ADB aligns with our corporate mission of innovative power distribution and driving energy transition," said Sebastien Prioux, CEO GreenYellow Vietnam. “ADB’s instrumental role in fostering connections among like-minded partners is integral to our collective journey in actively advancing sustainable development,” he added.

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By Thanh Van

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