Solar photovoltaic developer Cleantech Solar has secured a US$75 million green loan from ING Bank in Singapore, which represents the largest green loan in the Asia-Pacific region to date in the commercial and industrial (C&I) renewables sector.
Proceeds from the loan will be used to finance Cleantech’s expansion across Southeast Asia. The firm, which is headquartered in Singapore and has Shell and Climate Fund Managers as its strategic investors, has significantly ramped up its growth since the company was founded five years ago.
ING Bank will act as the loan’s sole mandated lead arranger and green structuring advisor. Its financing will support the funding required to deliver Cleantech’s strategy of building over 500 megawatts of solar power projects that will benefit local and multinational corporates across Southeast Asia by providing reliable and long-term cost-saving clean energy solutions.
"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," notes Nathan Schmidt, Climate Fund Managers’ regional head, Asia.
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 around 15% of the demand.