MUFG leads Malaysian 100MW solar plant financing
Facility part of nation’s push to achieve self-sufficiency in clean energy
Mitsubishi UFJ Financial Group’s banking subsidiary in Malaysia, MUFG Bank (Malaysia), announced that it acted as mandated lead arranger and sole green structuring adviser for a 342 million ringgit (US$83 million) syndicated financing facility for the development of a 100-megawatt (MW) solar plant located in Perak, Malaysia.
The deal, MUFG’s second solar transaction in Malaysia, achieved financial closure in December 2020 and reaffirmed the bank’s commitment to supporting the country’s renewable energy development goals.
The Kerian solar plant, named after a district in northwestern Perak state, is commissioned by a consortium comprising local power company TTL Energy and ENGIE Asia-Pacific,
The regional arm of the French multinational energy company Engie, which was one of the successful bidders under the third cycle of the large-scale solar scheme introduced by the Malaysian government to increase electricity generation from renewable energy.
The plant is scheduled for commercial operation in Q1 2022 under a 21-year power purchase agreement with Tenaga Nasion.
As green structuring adviser, MUFG worked closely with ENGIE to develop a green loan framework that not only served as the basis for the Kerian solar plant transaction, but will underpin all of the company’s greenfield renewable energy projects in Asia-Pacific moving forward.
“[This project] allowed us to leverage our strong track record and expertise in the renewable space on behalf of the client, but also contribute to Malaysia’s ongoing efforts at achieving self-sufficiency in clean energy,” says Colin Chen, MUFG’s head of structured finance, Asia investment banking. “We look forward to supporting more projects that will make a positive difference to the environment.”
Source: theasset
