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.

Verdant is a leading renewable energy developer headquartered in Singapore and backed by A.P. Moller Capital 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 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.

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 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’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 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.

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).

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.