UOB pumps $34m investment in Vietnam hydropower plant

The plant can generate 3,500 GWh of energy annually.

UOB goes green in its latest deal with Vietnam's largest privately-owned hydropower company, Bitexco Power Corporation, injecting $34 million in investments.

The deal was done through its subsidiary UOB Venture Management Pte. Ltd. (UOBVM). It made a joint investment with Japan financial services group ORIX Corporation, which will share another $34 million in investments.

According to UOBVM Managing Director Seah Kian Wee, the investment in Bitexco Power will be from its ASEAN China Investment Fund III.

“Hydropower is one of the most cost-efficient sources of electricity generation, and we believe Vietnam’s growth will continue to drive the demand for renewable energy. By investing in Bitexco Power, we hope to participate in the growth of the power sector and play a role in the country’s economic transformation," he said in a joint statement.

The investment came after the Vietnamese government's move of liberalising power sector and introducing market pricing to attract private investment.

Bitexco Power, which operates 18 hydropower plants in Vietnam, has a gross power capacity of one gigawatt. The existing capacity generates about 3,500 gigawatt-hours of renewable energy annually, providing electricity for 2.7 million people.

For Bitexco Power CEO Ian Fox, the acquisition of shares by UOB and ORIX will enable the company to continue its growth in the renewable energy space.

"It is also a reflection of their confidence in our ability to meet international corporate governance standards and our business plan execution, necessary to deliver long-term value to stakeholders and to contribute to the growth of the country," Fox explained.