| Company | GuarantCo |
| Sector | Power/Energy |
| Country | Vietnam |
| Total Project Cost | USD 30m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Vietnam’s bond market has begun to emerge, demonstrating growing investor appetite for sustainable finance. However, issuances to date have remained concentrated in bank balance sheets and large-scale infrastructure projects, with limited relevance for distributed renewable energy. While these transactions signal positive market development, Vietnam’s capital market remains underdeveloped and have not yet become a reliable source of funding for small scale C&I scale rooftop solar developers such as Verdant Energy to get long-term debt that is suitable for C&I solar projects. Institutional investors remain cautious due to credit risks, limited project scale, and the absence of credit enhancements. Without innovative financing solutions, such as guaranteed bonds, the sector will struggle to attract the capital needed to scale. Addressing these financing gaps is essential to accelerate the energy transition and ensure long-term energy security.
PIDG through GuarantCo provided a payment default guarantee over VND 792 billion (c. USD 30 million) green bonds issued by Verdant Energy’s Vietnamese commercial and industrial (C&I) platform. The proceeds of the green bonds will finance the construction of an additional 58 MW of C&I solar projects by Verdant.
We expect this transaction will create systemic change in the market, which is highly significant by bridging the gap between clean energy developers and capital markets, ultimately accelerating the flow of private capital into Vietnam’s energy transition and enabling broader replication of market-based financing structures for renewable energy in Vietnam.
An additional 58 MW of C&I solar projects by Verdant is forecast to avoid c. 31k tCO2e. The transaction is aligned with the Vietnamese government’s National Power Development Plan VIII and Vietnam’s 2050 Net Zero targets; wherein C&I development is integral to the country’s sustainability targets.
This transaction marks the first ever certified green, C&I solar bond financing in Vietnam, proving that a distributed renewable energy player can raise debt via a bond and the replication mechanism. These demonstration effects should motivate other developers and investors to pursue similar issuances.
The tenor of the bonds and guarantee is 15 years, the longest in the market for such facilities, which again should inspire replication
Verdant’s offtakers are active across several sectors including apparel and manufacturing. These businesses will benefit from significant electricity cost savings through the rooftop systems installed while also reducing carbon emissions aligned to their long-term ESG commitments.
As part of the transaction, Verdant will further increase access to employment opportunities for women. Additionally, as their business expands, Verdant aims to preserve a 60 per cent share of women in senior leadership and a 40 per cent of women across their workforce.
