In a statement, Cleantech Solar said the funding, which came from INB Bank’s Singapore branch, will be used to finance its expansion across Southeast Asia, where the demand for electricity is expected to rise annually.
The Shell and Climate Fund managers-backed company said the green loan from ING is the largest in the Asia Pacific to date in the commercial and industrial (C&I) renewables sector.
“This financing from ING will support the funding required to deliver the company’s strategy of building over 500MW of solar power projects,” Cleantech Solar said.
The green financing is not the first for ING in Asia Pacific. Last year, the company served as the sole mandated lead arranger for a S$50 million ($36.98 million) green loan for Singapore-based Sunseap, which is being used to build a 50-megawatt portfolio of rooftop PV projects.
According to the International Energy Authority, the demand for electricity in Southeast Asia is expected to see an average growth rate of 6 per cent annually, with renewable energy meeting just around 15 per cent of the demand.
Financing renewable energy and energy efficiency projects is crucial for countries in the Asia-Pacific region, ING Bank earlier said. It is estimated that by 2025, ASEAN countries will be home to over 715 million people, many of whom currently still lack access to modern energy services.
Renewables can play a key role in ensuring clean and affordable energy for people across the region, according to the bank.
“This deal adds to ING’s robust portfolio of renewables transactions that have also achieved a number of ‘firsts’ in the region… and is also in line with ING’s commitment to the RE100 initiative,” Krista Baetens, ING’s Head of Wholesale Banking Asia Pacific, said.