Vietnamese solar power developer CME Solar Investments (CMES) has bagged $12 million in debt financing from Switzerland-based impact investor responsAbility Investments AG.
The funding will enable CMES to expand its solar projects and offer green power to more users, especially commercial and industrial (C&I) clients.
Founded in 2018, the renewable energy firm is a C&I rooftop solar developer with over 30 projects across Vietnam. It is backed by the Vietnam Oman Investment Fund (VOI), a sovereign fund established by Oman Investment Authority and State Capital Investment Corporation (SCIC). VOI has so far disbursed nearly $300 million across five projects after 12 years of operating in Vietnam.
Rooftop solar energy such as that provided by CMES has assumed an important role in supplying power for direct on-site consumption without the need for transmission.
Based in Zurich, Switzerland, responsAbility is an asset manager focused exclusively on sustainable investment.
Since its inception in 2003, responsAbility-managed funds have disbursed more than $10 billion in private debt and private equity to companies in the financial inclusion, sustainable food, and climate finance sectors whose business models directly support the United Nation’s Sustainable Development Goals.
In Vietnam, responsAbility had earlier provided a financing package to Hanh Phuc General Hospital JSC in June 2021. In 2018, a responsAbility-managed climate fund and Nam A Bank teamed up to launch the bank’s green lending activities in the country.
Vietnam’s renewable energy sector has been steadily gaining investor interest. In September, the International Finance Corporation (IFC), a member of the World Bank Group, disclosed it was considering extending a $30 million financing to Vietnam-based T&J Green Energy Company to support its waste-to-energy project.
The Asian Development Bank (ADB) had earlier doled out a $160.5 million loan to Dau Tieng Tay Ninh Energy Joint Stock Company to support its B.Grimm Vietnam solar power project.
Last year, Dutch development bank FMO was considering a $6.5 million investment in Vietnamese renewable energy company TTC Energy, one of Vietnam’s leading solar conglomerates, to grow its portfolio in the country to over 100MW.