Singapore-based Cleantech Solar has secured a $75 million green loan from ING Bank N.V to expand its solar PV operations across Southeast Asia.
The green loan is claimed to be the largest in Asia Pacific within the commercial and industrial renewables sector.
Cleantech Solar, which has Shell and Climate Fund Managers as its strategic investors, was founded five years ago and will use the green loan to build over 500 MW of solar projects.
The projects to be built are expected to benefit leading local and multinational corporates across Southeast Asia with reliable and long-term cost-saving clean energy solutions.
Cleantech Solar has secured the funding at a time when Southeast Asia’s demand for electricity is expected to grow by 6% per annum, according to the International Energy Agency. Renewables are expected to meet 15% of the demand.
Adrian Lian, ING’s Lead for Renewables and Power Asia Pacific, said: “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.”
This deal adds to Netherlands-headquartered ING’s robust portfolio of renewables transactions that have also achieved several ‘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.”