On August 17, 2020, the signing ceremony of a USD 186 million loan between Asian Development Bank (ADB) and Phu Yen TTP Joint Stock Company (TTPPY) took place. This loan will be used to construct and operate a solar power plant with a capacity of 257 megawatts (MW) in Hoa Hoi commune, Phu Yen province. More specifically, the loan above has been the first green certification in Vietnam.

This includes a 27.9 million USD loan from ADB funds, a syndicated loan (Category B loan) funded by commercial banks with ADB as an Official Lender, and a $ 9.3 million loan from Leading Asia Private Sector Infrastructure Fund (LEAP) funding. This Category B loan is the first loan in Asia and the Pacific to be green certified by the Climate Bond Initiative, and is one of the largest Category B loans ever mobilized in Vietnam. Green loans are used to finance new or ongoing projects that benefit the environment or the climate.

Jackie B. Surtani, Head of the East Asia, Southeast Asia, and Pacific Infrastructure Finance Division of ADB's Private Sector Operations Division commented: “This project will support a rapid growth in Solar PV in Vietnam, boost the country's low-carbon growth goals, and create momentum for even greater funding from commercial banks for the renewable energy sector. ”

Hoa Hoi Solar Power Plant is currently the first operating plant in Vietnam as well as one of the largest projects in Southeast Asia, helping to reduce emissions by 123,000 tons of carbon dioxide per year. This is also the place that directly meets the electricity demand in Quang Ngai, Nha Trang - which are considered prominent tourist hubs in Vietnam - and the surrounding areas. Therefore, this grant is a milestone in Vietnam's renewable energy market, making a huge contribution to the development of green and sustainable energy in Vietnam and helping to promote the loan market green in Southeast Asia.