The Emerging Africa & Asia Infrastructure Fund (EAAIF), which expanded its mandate to South and Southeast Asia late last year, has invested $20 million in Vietnam-based CME Solar to support the company’s development of rooftop solar projects in the country.
CME Solar is expected to reach a scale of over 260 MWp of projects with the help of the proceeds from the transaction, according to a statement.
One of the world’s largest manufacturing hubs for global businesses, Vietnam still sees coal-fired power taking up 45% of its energy supply. The country targets to increase the share of renewable energy to 39.2% by 2030 and reach its net-zero carbon emissions targets by 2050.
EAAIF claims its investment in CME Solar will create the momentum for mainstreaming renewable energy technologies, which are often more cost-effective than fossil fuel-based sources.
“The investment from EAAIF marks a pivotal moment for us, enabling us to further strengthen our position in light of the recent government regulation aimed at stimulating the development of the commercial and industrial solar energy sector,” said Chung Dieu Tuan, CEO of CME Solar.
Esther Chan, Director of Ninety One, the fund manager of EAAIF, added: “The transition of Vietnam’s manufacturing sector to solar energy will significantly reduce carbon emissions in the country while continuing to support the sector’s green growth and economic dynamism.”
EAAIF is a blended finance vehicle to support infrastructure projects across Africa, the Levant, and South and Southeast Asia. It has supported 96 closed infrastructure projects across 10 sectors in over 20 African countries to date, with a committed loan portfolio of $1.35 billion.
CME Solar is the fund’s second transaction in Asia, following another $20-million financing for a Pakistani sustainable aviation fuel facility last month.
Prior to EAAIF’s funding, CME Solar received investment from Swiss impact investor responsAbility; and Vietnam Oman Investment Fund, the joint investment company of the Vietnamese government and Oman Investment Authority.
The solar energy developer has also established joint ventures with international partners including Sumitomo Forestry; Norfund and Finn Fund-backed Norsk Solar; and most recently Vista Global, an investment vehicle of Samsung C&T.
