Allens guides landmark USD30m Vietnam green bond issuance

Allens counsels GuarantCo on a payment default guarantee for a private VND-denominated USD30 million bond issuance by renewable energy developer Verdant Energy’s Vietnamese subsidiaries.

It is understood that Verdant Bravo and Verdant Crystal’s transaction is the first green bond issuance by a rooftop solar developer in Vietnam, marking a significant milestone in the jurisdiction’s sustainable finance market.

Allens advised on all aspects of the transaction, with Hanoi managing partner Giles Cooper leading the team.

“Allens acted as both transaction counsel and local counsel in connection with GuarantCo’s provision of a payment default guarantee to support the private issuance of VND‑denominated bonds by Verdant’s Vietnamese issuers,” Cooper told Asia Business Law Journal.

“Allens was responsible for legal due diligence, the preparation and negotiation of transaction documents, and assisting with the closing of the transaction.”

He said the transaction had emerged amid growing activity in Vietnam’s renewable energy sector.

“This transaction is the latest in a series of cross-border guarantee structures pioneered by GuarantCo in the Vietnamese market in recent years … GuarantCo has been recognised as Guarantor of the Year for its guarantee transactions in Vietnam since 2024, and this deal further strengthens its presence in the market while reinforcing its role in pioneering funding solutions for emerging sectors in Vietnam,” he said.

“It comes at a time of [a] rapidly developing regulatory environment for rooftop solar projects and private renewable energy sales in Vietnam.”

The green bond proceeds will be used to finance the development of an additional 58 megawatts of solar projects, enabling businesses to access cleaner energy and reducing emissions by an estimated 31,000 tonnes of carbon dioxide equivalent.

GuarantCo, a London-headquartered financial institution, offers long-term credit solutions and guarantees aimed at mobilising private investment in sustainable infrastructure projects across Asia and Africa.