Solar Developer Cleantech Solar Receives APAC’s Largest Green Loan at US$75M

cleantech solar

Cleantech Solar plans to build over 500MW of solar power projects across Southeast Asia

Singapore-based Cleantech Solar, one of the largest commercial and industrial (C&I) focused solar photovoltaic (PV) developers in Asia, has secured a US$75 million green loan from ING Bank N.V., Singapore Branch (ING), according to a press release issued today.

This is the largest green loan in Asia Pacific (APAC) to date in the commercial and industrial renewables sector, with the proceeds used to finance Cleantech Solar’s expansion across Southeast Asia, according to the statement. ‘Green Loan‘ refers to any loan instrument provided for green and sustainable projects with clear environmental benefits.

Cleantech Solar is a solar developer that finances, constructs, owns and operates solar projects across pan Asia. The company is backed by Shell and Climate Fund Managers as its strategic investors, and has significantly ramped up its growth since its inception in 2015.

The startup claims that it has been selected for numerous solar power plant contracts across India and Southeast Asia, covering over 500MW across the various stages of operations, construction, and development. The list includes installations in India, Cambodia, Malaysia, Thailand, the Philippines, Vietnam, and Singapore. The latest financing from ING is designated to support the buildout of these projects, according to the company’s statement.

According to the International Energy Authority (IEA), the demand for electricity in Southeast Asia is growing at an average rate of 6% annually – the fastest in the world – and the organization expects the region to achieve universal access to electricity by 2030.

The same report also noted that since 2000, overall energy demand in Southeast Asia has grown by more than 80% and the majority of this growth has been met by a doubling in fossil fuel use. Oil is the largest element in the regional energy mix, and coal – largely for power generation – has been the fastest growing, the report states.

Therefore, there is considerable potential for the growth of renewable energy in Southeast Asia, which currently meets only 15% of the region’s energy 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,” said Adrian Lian, ING’s Asia Pacific Lead for Renewables and Power.

“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,” said Jasmine Choo, Cleantech Solar’s Chief Operating Officer.

This deal adds to ING’s 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.

RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity. Led by The Climate Group in partnership with CDP, RE100’s mission is to accelerate the world’s shift to clean energy and zero carbon grids.

“This deal will expand Cleantech Solar’s ability to attract new clients seeking localized clean energy solutions in pursuit of its wider ambitions of remaining a leading Pan-Asian C&I player,” said Nathan Schmidt, Regional Head Asia at Climate Fund Managers.

Header Image courtesy of Cleantech Solar.

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Monika Ghosh
Monika Ghosh is a Staff Writer at Jumpstart

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