Milbank has advised Asian Development Bank (“ADB”) and a group of other senior secured parties on an historic US$692 million non-recourse project financing to construct and operate the Monsoon Wind Power Project located in Laos PDR.
The project, which will export electricity to Vietnam, will be the first wind power plant in Laos, the largest in Southeast Asia and the first Asian cross-border wind power project. The 133-turbine plant will sell electricity to Vietnam’s state-owned utility, Vietnam Electricity, under a 25-year power purchase agreement. The project is expected to reduce annual greenhouse gas emissions by 750,000 tons of carbon dioxide equivalent once operating.
The project sponsors are ACEN Renewables International Private Limited, BCPG Public Company Limited, Impact Electrons Siam Company Limited, Mitsubishi Corporation, and SMP Consultation Sole Company Limited.
ADB was lead arranger and bookrunner for the financing. The senior secured parties represented by Milbank also include Asian Infrastructure Investment Bank, Japan International Cooperation Agency, Export-Import Bank of Thailand, the Hong Kong Mortgage Corporation Limited, Kasikornbank Public Company Limited, Sumitomo Mitsui Banking Corporation and the Siam Commercial Bank Public Company Limited.
The largest syndicated renewable energy project financing among ASEAN countries to date, the Monsoon Wind Power Project transaction utilizes concessional blended finance to bring in more commercial capital and further enhance the bankability of the project.
“We are proud to have been involved in this ground-breaking transaction which will have significant impact for future projects in Asia as the region continues its transition to renewable energy”, Milbank partner James Murray said. “The Monsoon Project has shown that it is possible to structure a bankable cross-border wind financing of significant scale and complexity. The structure and documentation put in place to support the financing creates a compelling blueprint for future deals of its kind.”
The Singapore-based Milbank team was led by Global Project, Energy and Infrastructure Finance Group partner James Murray, special counsel Andrew Gibb and associate Rosaline Yusman, with additional support from partner James Orme and associates Zhen Yang Kua and Erin Zhang.
Read more about the significance of this landmark project in “Monsoon Wind: A Roadmap for Electricity Connectivity in Asia.”
