TMB Bank Public Company Limited is further expanding its financing activities in the commercial and industrial (C&I) solar sector by providing Thailand-based Constant Energy Group with a 1.5 billion THB (approx. US$50 million) long term green project finance loan package. The funding will be deployed to further expand Constant Energy’s sizeable portfolio of solar energy projects for leading C&I clients in Thailand.
The solar power projects developed and operated by Constant Energy ensure C&I offtakers have access to clean and reliable power vs grid supplies, at a significant discount to grid prices or diesel alternatives, improve resiliency against grid interruptions, and allows customers to focus on their core activities while meeting their carbon emissions reduction and sustainability targets. Given the increasing power requirements of C&I customers and the high cost-saving potential these solar solutions offer, the market is expected to grow dynamically over the coming years.
This facility follows Constant Energy raising US$15 million via a long-term senior secured loan from Switzerland-based investment firm Global Climate Partnership Fund (GCPF) in February 2020.
The project finance loan agreement signing ceremony was held at The Westin Grande Sukhumvit hotel on 18th December 2020.
Franck Constant, founder and CEO of Constant Energy, said: “This is our second bank financing concluded this year, and the largest green loan to the commercial and industrial solar sector to date in Thailand. This financing paves the way for our accelerated growth and further demonstrates Constant Energy’s long-term commitment to, and confidence in, Thailand – through providing reliable, distributed renewable energy supply and working in partnership with our clients by reducing their operating cost, with the communities by supporting the local economy, providing employment opportunities and protecting the environment.”
Alexander Langfeldt, Head of Corporate Banking of TMB Bank PCL added, “The financing of these solar plants based on long-term offtake agreements by established corporate clients represents one of our flagship transactions in renewable energy and one of the largest C&I deals in ASEAN for 2020. We are delighted to work with Constant Energy who demonstrates highly professional and entrepreneurial values in line with our strategy.”
At TMB we believe that sustainability is a key component of responsible banking. As such, the renewable energy sphere is one of our focused industries, and we are therefore particularly proud of this transaction as it helps society’s transition towards a lower carbon emitting world.”
Brandon Courban, Executive Director at Olympus Capital and Board Member at Constant Energy said, “This facility is an exciting step forward for Constant Energy, and will allow the Company to further accelerate the deployment of clean and reliable power solutions to C&I partners across Thailand.”
TMB Bank was advised by Norton Rose Fulbright and Constant Energy by Hunton Andrews Kurth LLP as legal advisor in the transaction.