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.
About Constant Energy
Constant Energy is a renewable electricity generation and storage provider which invests in, and manages, high-quality power assets in selected countries. As a solar developer and Independent Power Producer (IPP), we develop, design, finance, build, own and operate utility-scale and large industrial rooftop-based solar PV power plants. Regionally headquartered in Bangkok, Constant Energy operates in Asia with a primary focus in Southeast Asia (Thailand, Vietnam and Malaysia). We produce clean and reliable electricity to our clients for the long term, enabling them to reduce their energy bill, increase profitability and enterprise value while focusing on their core business activities. In January 2020, Constant Energy raised growth capital from private investment firm Olympus Capital through its Asia Environmental Partners (“AEP”) vehicle.
More information at www.constantenergy.net
About Olympus Capital Asia and Asia Environmental Partners
Olympus Capital Asia is an independent private investment firm that has been successfully investing in middle market companies across Asia for over 20 years. Since its founding in 1997, Olympus Capital Asia has invested more than $2.5 billion in private equity and private debt capital on behalf of its funds and co-investors in over 65 portfolio companies throughout Asia, including Southeast Asia, India, China, South Korea and Japan.
The Firm established Asia Environmental Partners (“AEP”) in 2008 to target the fast-growing renewable energy and environmental sectors in Asia with a focus on investments that support the principles of sustainable development. To date, AEP has made 18 investments in the renewable energy and environmental sectors including: hydropower, wind power, water treatment, waste-to-energy and sustainability products and services.
More information at www.olympuscap.com.
About TMB | Thanachart
TMB is a market leader in deposits and digital banking while Thanachart Bank is a market leader in retail lending, particularly in the auto hire purchase segment where is ranked No.1 in the Thai market. After the successful merger with Thanachart Bank, TMB’s operational scale has doubled in size with total assets of Thai Baht 1.9 trillion and is now the 6th largest bank in Thailand. TMB, together with Thanachart Bank, has a combined branch network of over 900 branches nationwide and a customer base more than 10 million.
About Hunton Andrews Kurth
With 1,000 lawyers in the US, Asia, Europe and the Middle East, Hunton Andrews Kurth LLP serves clients across range of complex transactional, litigation and regulatory matters. It is known for strengths in the renewable and traditional energy, financial services, and real estate industries. Through the Bangkok office, the firm’s energy and infrastructure team has represented clients in some of the largest and most complex energy and infrastructure project development and financing and M&A transactions throughout Asia.
More information at https://www.huntonak.com/en/