Solar photovoltaic (PV) manufacturer Hanwha Q CELLS Malaysia on September 1 issued its first green bond amounting to 150 million ringgit (US$36.10 million) on the back of a 100% guarantee provided by Credit Guarantee & Investment Facility (CGIF).

The three-year deal, which qualifies as an Asean green bond issuance, is the first ringgit-denominated bond guaranteed by CGIF. Rated AAA by RAM Rating Services, the offering was 2.07 times oversubscribed with strong demand from onshore and offshore institutional investors. Hanwha Q CELLS Malaysia will use the bond proceeds for eligible green projects under its green bond framework.

CGIF CEO Guiying Sun says the bond issuance will certainly benefit Hanwha Q CELLS Malaysia in diversifying its funding sources to support its growing green business. “CGIF will continue to support thematic bonds, such as green and social, issued by Asean+3 companies for the sustainable economic growth and social development of the region,” she adds.

Hanwha Q CELLS managing director Lee Byung-cheon says his company will work with the group to further expand its green energy business in Malaysia. “Amid concerns over rapid global warming and subsequent carbon reduction plans in each country, Hanwha is taking the lead in solving these environmental problems by investing not only in solar energy but in various renewable energy sectors such as hydrogen and wind power,” he says.

CIMB acted as the principal adviser, lead arranger and facility agent for the transaction, as well as a joint lead manager, along with Standard Chartered Malaysia.

Hanwha Q CELLS is 100% owned by Hanwha Solutions Corporation and has international manufacturing facilities in the US, Malaysia, China and South Korea. It offers a full spectrum of PV products, applications and solutions – from cells, modules, kits and systems to large-scale solar power plants.

CGIF is a multilateral facility established by the Asean members, China, Japan, Korea (Asean+3) and the Asian Development Bank. Established to develop and strengthen the local currency and regional bond markets in the Asean+3 region, it commenced its guarantee operations on May 1 2012 and seeks to provide credit enhancements, mainly in local currencies, issued by credit worthy Asean+3-domiciled bond issuers.

CGIF previously guaranteed the three-year 1-billion-yuan (US$154.80 million) green dim sum bond by Hanwha Solutions in April this year – the first dim sum bond supported and the first green bond guaranteed by CGIF.