Hunton Andrews Kurth Advises Banpu NEXT on Renewable Energy Expansion in Vietnam

During 2021, Hunton Andrews Kurth LLP’s Bangkok-based attorneys advised Banpu NEXT Company Limited on a number of milestone transactions significant to the strategic expansion of its renewable energy portfolio in Vietnam. Banpu NEXT, is the diversified clean energy flagship subsidiary of non-oil energy conglomerate and Thai stock exchange-listed, Banpu Public Company Limited. Banpu NEXT focuses on renewable energy, batteries, energy storage and management, electricity trading, smart cities and e-mobility (including Thailand’s first fleet of e-ferries).

In July, Hunton Andrews Kurth advised BRE Singapore Private Limited, a joint venture between Banpu NEXT and Banpu Power Public Company Limited, on the US $66 million acquisition of a 100% equity interest in the 37.6 MW El Wind Mui Dinh onshore wind farm located in Ninh Theun Province in the southern region. The wind farm has been operating since April 2019 and sells generated electricity to state-run Electricity Vietnam (EVN). Initially signed in August 2020, the acquisition closed in July 2021 after regulatory approvals and fulfillment of customary conditions. El Wind Mui Dinh is the country’s first foreign-owned wind farm, having been developed by the sellers, Enercon GmbH and eab New Energy GmbH of Germany.

In September, Hunton Andrews Kurth advised BPP Vinh Chau Wind Power Limited Liability Company, a subsidiary of Banpu NEXT, on the limited recourse project financing for the development of an onshore wind farm with a total generating capacity of 90 MW, located along the Mekong Delta in Vinh Chau Town, Soc Trang Province. This financing, which is one of the first limited recourse project financing of a Vietnam renewable energy project by a foreign commercial bank, consists of a US $38.86 million loan facility and a VND 100.2 billion (approximate) loan facility from Bangkok Bank Public Company Limited, acting through its Bangkok and Ho Chi Minh City branches. The first phase of the project is expected to commence commercial operation within the first quarter of 2022 and will supply generated electricity to EVN.

In December, Hunton Andrews Kurth advised Banpu NEXT on the US $23.9 million acquisition of a 100% equity interest in Ha Tinh Solar Power Joint Stock Company, the owner and operator of a 50 MW a ground-mount solar farm in Ha Tinh Province, one of the largest solar power facilities in the north-central region. The project has been operating since June 2019 and sells generated electricity to EVN. The sale and purchase agreement was signed on December 2, 2021, and the closing is expected to occur in the first quarter of 2022 after regulatory approvals and satisfaction of certain conditions. This transaction will be Banpu’s first acquisition of a solar power facility in Vietnam.

The Hunton Andrews Kurth Bangkok-based team representing Banpu Next in Vietnam is led by partner Chumbhot (Arm) Plangtrakul together with associates Sudarat Sattayakawee, Jitranut Narkmai and Thaphanut Vimolkej. Supporting the team as Vietnam counsel are ZICO Law Vietnam and DFDL Mekong.