Singapore-headquartered renewable energy developer Verdant, backed by A.P. Moller Capital, has secured Vietnam’s first certified green commercial and industrial (C&I) solar bond financing, marking the company’s inaugural capital markets issuance globally.
The green bond transaction will finance the expansion of Verdant’s commercial and industrial rooftop solar portfolio across Vietnam. The bonds, backed by GuarantCo, will be issued in two phases by the end of 2026. The first tranche has been fully subscribed by domestic institutional investors, primarily insurance companies.
The transaction features a 15-year tenor for both the bonds and the guarantee, making it the longest-term financing currently available in Vietnam for projects of this type.
According to the company, the financing supports Vietnam’s National Power Development Plan VIII and the country’s target of achieving net-zero emissions by 2050, with commercial and industrial solar installations playing a key role in expanding renewable energy capacity.
Verdant’s rooftop solar systems serve commercial and industrial customers across sectors including apparel and manufacturing, enabling businesses to reduce electricity costs while lowering carbon emissions and supporting their long-term environmental, social, and governance (ESG) objectives.
The green bonds are aligned with the International Capital Market Association’s (ICMA) Green Bond Principles and Verdant’s Green Finance Framework. The framework has received an independent Second Party Opinion from FiinRatings, validating the environmental credentials of the financing.
The transaction is also expected to contribute to the United Nations Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 13 (Climate Action).
As part of its sustainability commitments, Verdant said it will continue promoting gender diversity as its business expands, with the goal of maintaining 60% women representation in senior leadership and 40% women representation across its workforce.
The financing follows support received earlier this year from the Emerging Africa & Asia Infrastructure Fund (EAAIF), another member of the Private Infrastructure Development Group (PIDG). EAAIF previously provided acquisition bridge financing for a hybrid wind and energy storage project being developed by Philippines Hybrid Energy Systems Inc. (PHESI).
Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia for PIDG, said the transaction supports Verdant’s strategy to diversify its funding sources while expanding its commercial and industrial solar portfolio. He added that the financing model could serve as a replicable framework for mobilising domestic institutional capital into sustainable infrastructure projects across the region.
Sivaramakrishnan Sreedharan, Chief Investment Officer of Verdant Energy, said the transaction demonstrates how domestic institutional investors, particularly insurance companies, can participate in long-term renewable infrastructure investments through a robust green bond structure. He noted that the partnership with GuarantCo broadens access to local capital markets and supports the continued growth of renewable energy in Vietnam and Southeast Asia.
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