Norsk Solar secures project financing from responsAbility for 11 megawatt solar rooftop project in Vietnam
24. May 2022
Norsk Solar Vietnam Ltd has secured non-recourse project financing of up to USD 12 million from responsAbility Investments. Norsk Solar Vietnam Ltd is owned by Nordic Impact Cooperation AS, an investment platform owned by Norsk Solar AS and Finnfund, as well as Norfund.
Approximately USD 6 million is committed to finance part of the recently completed 11 MW Central Retail project in Vietnam, with the uncommitted remainder available for drawdown for further projects in Vietnam.
This agreement with responsAbility demonstrates the confidence that institutional impact investors have in Norsk Solar, our business model and how we structure project financing. I am also very proud that our commitment to sustainability is recognized as a climate fund investment and am excited about our continued growth in Vietnam with the backing of strong partners.
Øyvind L. Vesterdal, CEO in Norsk Solar
The transaction takes place through two climate funds managed by responsAbility and will allow Norsk Solar to finance commercial & industrial (C&I) solar projects in Vietnam. Increasing C&I access to clean power is key to reaching zero-emissions targets Vietnam. The Central Retail project will offset up to 200 000 tonnes of carbon emissions over the systems’ lifetimes.
Our investment in Norsk Solar demonstrates our commitment to sustainable energy. We see great potential in Vietnam’s solar sector, especially with respect to the adoption by C&I off takers who are keen to minimize costs. We are excited to enable their current expansion of Norsk Solar, a leading provider. By providing debt financing, responsAbility’s climate funds will fill a financing gap that is crucial to create both sustainable growth and social development.
Antonia Schaeli, Deputy Head Direct Investments Climate Finance, responsAbility
This transaction aligns with Norsk Solar and responsAbility’s shared goal to support and foster the growth of the development of the C&I segment in Southeast Asia, where local bank financing is generally not yet readily accessible for these projects.
responsAbility Climate Finance supports renewable energy and energy efficiency projects and companies to promote access to reliable, clean, and affordable energy in developing and emerging countries while catalyzing sustainable development and contributing to the UN SDGs.
Read more about responsAbility Investments at responsability.com