Vestas has assisted Vietnamese developer Tan Hoan Cau Joint Stock Corporation to secure funding for the 33MW Huong Linh 1 wind farm in the south-east Asian country.
The turbine manufacturer’s structured finance business coordinated the financiers, which included the Danish Export Credit Agency (EKF), an offshore bank and a Vietnamese bank, to provide money for the project.
“By having a thorough market and customer understanding, Vestas was able to lead a collaborative effort in developing an innovative solution that featured structuring a local bank guarantee to the offshore bank, who in turn received a further guarantee from EKF,” the company said.
Huong Linh 1 is located at Huong Hoa town in Quang Tri province. Vestas is supplying and supervising installation of 15 turbines from the 2MW platform.
The Danish company will also provide a 10-year service agreement (AOM 4000) including a Vestas online business SCADA solution.
The project achieved financial close in December, with turbine installation expected to commence around the end of first quarter of 2019.
Tan Hoan Cau Joint Stock Company deputy director Nguyen Trung Thanh said: “Achieving the financial close for this deal with EKF, the Danish Export Credit Agency, is a significant milestone in Vietnam’s wind industry.
“With Vestas’ proven track record in the Asia Pacific region and its ability to provide customised solutions, we are glad they connected us with the right partners to finance our project.”
Vestas Asia Pacific president Clive Turton said: “Securing this order underlines Vestas’ expertise in structured finance to offer our customers customised financing solutions based on their specific requirements.
“This project also demonstrates THC’s continuous confidence in us since our cooperation in Huong Linh 2 wind farm which started generating clean energy in September 2017.”
EKF chief executive Kirstine Damkjaer said: “Vietnam is a country with increasing energy needs and good conditions for wind energy.
“EKF has participated in wind farm financing worldwide, and our guarantees makes it possible to attract project funding from international banks.
“We see a great potential in Vietnam and are very proud to be part of the financing of the Huong Lihn 1 wind farm.
“EKF is ready to cover more wind farm financings in Vietnam in the years to come.”