Cleantech Solar, one of the largest commercial and industrial (C&I) focused solar PV developers in Asia, has secured a US$75 million green loan from ING Bank N.V., Singapore Branch (ING). ING was the sole Mandated Lead Arranger and Green Structuring Advisor. This is the largest green loan in Asia Pacific to date in the C&I renewables sector, with the proceeds used to finance Cleantech Solar’s expansion across Southeast Asia.
Headquartered in Singapore, Cleantech Solar, which has Shell and Climate Fund Managers as its strategic investors, has significantly ramped up its growth since the company was founded five years ago. This financing from ING will support the funding required to deliver the company’s strategy of building over 500MW of solar power projects. These projects will benefit leading local and multinational corporates across Southeast Asia with reliable and long-term cost saving clean energy solutions.
According to the International Energy Authority, the demand for electricity in Southeast Asia is expected to see an average growth rate of 6% annually with renewable energy meeting just around 15% of the demand.
“We consider the Cleantech Solar team to be best-in-class, in a C&I sector that has experienced tremendous growth. A strong technical grounding and resolute customer focus have been instrumental to their success. ING is thrilled to have combined Cleantech Solar’s strengths with ING’s renewables expertise to arrange a specially structured solution to support their business,” said Adrian Lian, ING’s Lead for Renewables and Power Asia Pacific.
Raju Shukla, Cleantech Solar’s Founder and Executive Chairman said: “During these extraordinary times, we are extremely proud that our team and ING were able to partner together to secure this financing. Over the years, we have delivered reliable and high quality solar solutions that improve the bottom line for customers while contributing to protecting the environment.”
Jasmine Choo, Cleantech Solar’s Chief Operating Officer, added: “The transaction with ING underscores our strong portfolio and ability to deliver highly-competitive solutions to corporates across Asia. This will enable us to accelerate our portfolio expansion in the region to benefit even more customers with a compelling solution for their clean energy needs.”
This deal adds to ING’s robust portfolio of renewables transactions that have also achieved a number of “firsts” in the region. Guided by ING’s Terra Approach, the green loan is also in line with ING’s commitment to the RE100 initiative . Krista Baetens, ING’s Head of Wholesale Banking Asia Pacific, said: “We’re delighted to be able to support Cleantech Solar, which counts numerous RE100 members in its customer base. This loan is also aligned with the global Green Loan Principles. We are optimistic that our partnership will contribute to a greener impact within the region and beyond.”
Nathan Schmidt, Regional Head Asia at Climate Fund Managers, noted: “This deal will expand Cleantech Solar’s ability to attract new clients seeking localised clean energy solutions in pursuit of its wider ambitions of remaining a leading Pan-Asian C&I player.”