EAAIF invests $20 million in CME Solar to power Vietnam’s manufacturing sector
EAAIF invests $20 million in CME Solar to power Vietnam’s manufacturing sector
The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, on January 6 announced a $20 million investment in CME Solar to support the company to develop a pipeline of rooftop solar projects for companies in Vietnam.
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CME Solar is expected to reach a scale of over 260MWp of projects on the back of this transaction.
EAAIF's commitment to CME Solar, a prominent player in Vietnam's commercial and industrial solar energy sector, supports the decarbonisation objectives of their clients and creates momentum for mainstreaming renewable energy technologies that are often more cost-effective than traditional fossil fuel-based energy sources.
Vietnam is one of the world's largest manufacturing hubs for global businesses. With coal-fired power accounting for 45 per cent of the country's energy supply there is an urgent need to help Vietnam meet its development objective to promote green growth, reduce energy consumption, and accelerate the energy transition in key industries, including electronics, textiles, construction, steel, packaging, food and beverages, and manufacturing.
By providing catalytic capital that will mobilise additional financing needed by CME Solar to roll out their pipeline, this transaction contributes to the uptake of solar-powered technologies along supply chains in Vietnam, which enhances business resilience and helps companies reach their climate targets, and brings the country closer to increasing the share of renewable energy up to 39.2 per cent by 2030 and reaching their net-zero carbon emissions targets by 20502.
The investment marks EAAIF's second transaction in Asia as the debt fund increases its exposure and competitive grasp across the region. The new commitment combines market transformation with action on climate, which aligns with the Private Infrastructure Development Group 2023-2030 strategy.
Esther Chan, director of Ninety One, the fund manager of EAAIF, said, "Our investment in CME Solar is a testament to EAAIF's ability to identify and finance infrastructure projects that will transform entire economies through targeted investments in job-creating sectors. 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."
Chung Dieu Tuan, CEO of CME Solar, said, “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. This investment underscores our ability to meet global standards in terms of operation and performance, as well as our unwavering commitment to a low-carbon economy.”
