Cleantech Solar, 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 Asia Pacific Lead for Renewables and Power.
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, 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.”
ING is a global financial institution with a strong European base and offering banking services through its operating company ING Bank.Its shares are listed on the exchanges of Amsterdam, Brussels and on the New York Stock Exchange.