Sunseap Group has secured an $85.8 million green loan facility from DBS Bank and UOB Bank on Nov 1.
The loan facility will finance its SolarNova4 project to install solar photovoltaic (PV) systems across over 1,200 public housing blocks and 49 government sites.
The project has a capacity of 70 MWp and is estimated to generate 96,775 MWh, which is equivalent to powering some 20,400 four-room HDB flats.
The project, which is the largest clean energy project in Singapore to date, is also said to offset over 68,583 tonnes of carbon emissions per annum.
Sunseap won the tender for Phase 4 of the SolarNova project in 2019. Installations commenced in 2020.
The programme is a whole-of-government effort led by the Housing Development Board (HDB) and the Economic Development Board (EDB) to promote and aggregate demand for solar PV systems to achieve economies of scale and drive growth for Singapore’s solar industry.
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Of the loan amount, DBS and UOB will each provide $42.9 million (or half of the loan amount) utilising Sunseap’s green financing framework.
Both banks have extended green financing to the clean energy solutions provider previously.
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Sunseap’s green financing framework is aligned to the International Capital Market Association’s green bond principles 2018, the Loan Market Association’s Green Loan Principles 2018 and Asean Green Bond Standards 2018.
“We are delighted to have the support of Singapore’s two leading banks once again as we continue to roll out clean energy projects in Singapore and across the region,” says Keith Lim, chief financial officer of Sunseap.
“Global warming remains a clear and present danger to life on the planet and Sunseap will continue to ramp up our capabilities and do our part to ensure a clean and green future for current and future generations,” he adds.
“We believe that the green sector has huge potential for Singapore’s economy, and will play a critical role in helping Singapore realise a lower carbon future. DBS is committed to catalysing growth in the green sector by helping local enterprises develop capabilities and capture opportunities arising from sustainability megatrends, such as the rapid adoption of renewable energy and decarbonisation solutions. We are pleased to partner Sunseap as it embarks on one of Singapore’s most ambitious solar projects to date,” says Joyce Tee, group head of SME Banking at DBS.
“The launch of the SolarNova4 project is a powerful demonstration of how sustainability objectives can be incorporated into business strategies, a trend that is on the rise. We are pleased to embark on Singapore’s largest green project financing to-date with our longstanding client, Sunseap Group. UOB will continue to drive sustainability goals together with our clients and industry partners, building ecosystems and solutions to help more companies and individuals adopt sustainable practices,” adds Eric Tham, head of group commercial banking at UOB.
Photo of Jurong HDB estate: Sunseap
