July 2018 – Dam Nai Wind Project Closes on Vietnam’s First Non-Recourse Project Financing in the Non-hydro Renewable Energy Sector

Astris Finance is pleased to announce the successful closing of the debt financing for the 40 MW Dam Nai wind project (the “Project”) arranged with one of the largest Vietnamese banking groups.

This closing would not have been possible without the remarkable collaboration of the visionary stakeholders behind the Dam Nai wind project. Ahead of the market, these stakeholders worked together to apply the global wind industry’s best practices in respect of all aspects of project development -- design, construction, operation, environmental & social impact assessment and mitigation, and debt financing.

The Project has been developed by Singapore-headquartered The Blue Circle in association with local partner TSV Investments. In February 2017, Armstrong SEA Clean Energy Fund invested into the Project and since then has been acting as its financial sponsor. Astris Finance acted as exclusive financial advisor to the project company and its sponsors.

The Project was the first foreign-controlled wind farm project to reach commissioning in Vietnam, when its Phase 1 of 6MW achieved commercial operation in November 2017.

The seventeen-year financing for an amount in VND equivalent to approximately USD 45m signed in June and received its first disbursement on July 3rd, 2018. Its main purpose is to refinance a portion of the Phase 1 costs and to finance the construction of Phase 2. It is the first-ever long-term project finance package arranged for a non-hydro renewable project in Vietnam with no direct recourse against the sponsors and no credit enhancement solution.

Hugo Virag, who heads Astris Finance’s operations in South East Asia, said: “This is a landmark transaction for both the Vietnamese renewable sector and the Vietnamese banking sector. We hope it will greatly contribute to setting solid market standards for the Vietnamese renewable project finance sector, paving the way for the rapid expansion of renewable energy in Vietnam.”

According to the National Power Development Plan VII, as amended in 2016, Vietnam’s generation capacity is expected to grow from 45 GW currently to 130 GW in 2030 – with over 26 GW to be contributed by non-hydro renewable projects. This growth is unlikely to take place without a solid project finance framework in place.

Fabrice Henry, CEO of Astris Finance, said: “This transaction showcases one of the trademarks of Astris: our ability to patiently work with market participants to craft a financing structure that closes the contractual and regulatory gaps often present when a new energy market emerges.

We are both honoured and proud to have contributed to the advancement of the renewable energy market in Vietnam and are hopeful that the market will grow very strongly in the years ahead.”

For any inquiries, please contact Mr. Hugo Virag via email (hugo.virag@astrisfinance.com) or at +65 6809 3718