GuarantCo backs Vietnam’s first C&I solar green bond by Verdant Energy

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has 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, forecast to avoid c. 31k tCO2e.

Verdant is a leading renewable energy developer headquartered in Singapore and backed by A.P. Moller Capital[1] to invest in renewable energy projects across Asia Pacific. This transaction marks the first ever certified green, C&I solar bond financing in Vietnam and Verdant’s first capital market issuance globally.

The tenor of the bonds and guarantee is 15 years, the longest in the market for such facilities. The green bonds will be issued in two phases by the end of 2026, with the first bond phase fully subscribed by local institutional investors, mainly insurance companies. 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.

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.

The transaction is expected to support the United Nations Sustainable Development Goals 7 (affordable and clean energy), 8 (decent work and economic growth) and 13 (climate action). The bonds fully align with the International Capital Market Association’s Green Bond Principles and Verdant’s Green Finance Framework, which was independently reviewed by FiinRatings to issue a Second Party Opinion.

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.

This GuarantCo transaction follows the backing of Verdant earlier this year by the Emerging Africa & Asia Infrastructure Fund (EAAIF), also part of PIDG. EAAIF supported Verdant with bridge-loan acquisition financing for a pioneering wind and storage power project of Philippines Hybrid Energy Systems Inc (PHESI).

Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia for PIDG, said:

“We are proud to be supporting Verdant Energy in increasing its solar power portfolio for its C&I customer base and its first-ever capital market issuance, a key part of Verdant’s strategy to diversify its funding base. Vietnam’s solar energy market is one of the fastest growing in Asia, central to the country’s goal of reaching Net Zero by 2050. We are hopeful that this transaction will function as a replicable model to build the confidence of issuers and investors in operating in the sustainable infrastructure space, where private capital is urgently needed to transform lives, and support climate resilience and economic development.”

Sivaramakrishnan Sreedharan, Chief Investment Officer of Verdant Energy, said:

“At Verdant, our objective is to develop high-quality renewable energy assets, and along with it comes an important aspect to create innovative but repeatable financing solutions that can accelerate the flow of capital into energy transition, eventually creating the scale of investments. This transaction demonstrates how domestic institutional investors, particularly insurance companies, our reputable partners, can participate in long-term sustainable infrastructure investments through a robust green bond structure. Together with GuarantCo, we have established a platform that broadens access to local capital markets and supports the continued growth of renewable energy across Vietnam and Southeast Asia. The transaction builds on Verdant’s Green Finance Framework and dedicated Green Finance Committee, reinforcing our commitment to high standards of governance, transparency, and sustainable capital allocation.”

[1] A.P. Moller Capital is an established infrastructure fund manager with USD 2 billion AUM and a subsidiary of the A. P. Moller Group with more than USD 110 billion in consolidated assets.