BGG - SP Greensky, a joint venture between Singapore utilities company SP Group and Vietnamese firm BCG Energy, has received $31.5 million disbursed by three major Singapore banks as part of a credit line totaling $50 million.
The credit line, a syndicated loan from DBS, Oversea Chinese Banking Corp. (OCBC), and United Overseas Bank (UOB), is for BCG- SP Solar 1 JSC, a wholly-owned subsidiary of the joint venture, and the disbursement has gone to the unit.
A rooftop solar system made by BCG Energy in Vietnam. Photo courtesy of the firm.
BCG - SP Solar 1 will use the proceeds to finance its rooftop solar power projects in Vietnam, which is implementing a cleaner energy transition process toward its carbon neutrality goal by 2050.
BCG - SP Solar 1 and the three banks are talking about disbursing the remaining $18.5 million. A representative of Ho Chi Minh City-based BCG Energy said that the funding from the three leading Singapore lenders has “a very good interest rate and a term suitable for rooftop solar projects,” therefore his joint venture with SP Group is able to radically reduce electricity generating costs.
“Amid global economic headwinds, the three banks’ disbursement of $31.5 million for BCG - SP Solar 1 shows credit suppliers’ trust in the solid business foundation and healthy credit conditions of BCG Energy and SP Group,” said Khoa Phan, CEO of BCG - SP Greensky.
“We will use this loan to strengthen our financial structure and finance our rooftop solar projects to make contributions to Vietnam’s cleaner energy transition,” he said.
Being able to access offshore capital sources while Vietnamese enterprises are facing a credit crunch is seen as great efforts by businesses financed, demonstrating their firm status.
BCG Energy is part of Vietnamese conglomerate Bamboo Capital Group, better known as BCG. Pham Minh Tuan, vice chairman of the group and CEO of BCG Energy, said securing this syndicated loan package shows that BCG Energy’s young leadership has become mature with the ability to work with major financial institutions and international partners with strict standards.
HCMC-headquartered BCG is improving its governance, empowering executives of a younger generation at its subsidiaries to be more proactive in management and decision-making. Together with its competency in carrying out its projects and tapping foreign capital markets, BCG shows its advantages despite the domestic credit crunch.
BCG Energy, a key member of BCG (HoSE: BCG), focuses on the development and operation of ground-mounted and rooftop solar assets in Vietnam. The assets include some 600 MW of electricity installed, 229 MW under installation, and 670 MW in the pipeline.
Formed in 2021, the BCG – Greensky joint venture has so far put into operation 71 MW of rooftop solar power. It has at least 500 MW of this energy in the pipeline for the period 2022 – 2025, eyeing a leading position in the segment.