Standard Chartered Provides MYR 134 million financing to
SunEdison for solar projects in Malaysia
25 June 2013, Kuala Lumpur
- Standard Chartered and a Malaysian company sponsored by SunEdison, Inc. (NYSE:SUNE), together with Malaysia-based Sun Energy Ventures have signed MYR 134 million loan facilities for two solar projects (10MW and 5MW) in Malaysia. The 10 MW project, which is expected to be operational in August 2013, will be the largest single solar power plant to be implemented in Malaysia. These projects are SunEdison's first utility scale solar energy endeavour in Malaysia.
Once both projects are operational, they are expected to generate over 370 million kilowatt hours of energy over 20 years - enough energy to power over 6,000 homes while offsetting approximately 12 million kilograms of carbon dioxide emissions every year.
"Working with an established finance partner like Standard Chartered is critical to success when entering a new market," said Pashupathy Gopalan, Managing Director - South Asia and Sub-Saharan Africa Operations for SunEdison. "SunEdison is committed to making solar power an economically sound and universally available energy solution around the world. Being able to collaborate with companies like Standard Chartered who will share their knowledge of local regulations and financing structures enables us to achieve this goal."
Commenting on the agreement, Brad Sterley, Global Head of Clean Energy Project and Export Finance for Standard Chartered said, "We are delighted to build on our experience as key debt providers in over 250 MW of successful solar projects, and play a key role in supporting SunEdison's strategic entry into the Malaysian solar market. The agreement reiterates our commitment to renewable energy projects and clean technologies, and illustrates our expertise and intimate knowledge of our footprint markets of Asia, Africa and the Middle East."
Saif Malik, Country Head of Origination and Client Coverage, Standard Chartered Bank Malaysia Berhad said, "The world's demand for more and more power, especially clean power, creates tremendous opportunities for the solar industry in Malaysia. We are excited to facilitate SunEdison's foray into the country as this not only bodes well for job creation but also supports the government's transformation programme to make Malaysia a focal centre for the manufacturing and deployment of renewable energy."
This transaction highlighted Standard Chartered's ability to offer a wide array of services to support the client's growth agenda in Malaysia. The bank's roles include mandated lead arranger, lender, hedge provider, account bank, facility agent and security agent.