BCG - SP Solar 1, a joint venture between SP Group (Singapore) and BCG Energy (Vietnam), has just secured a disbursement of $31.5 million in a total credit line of up to $50 million from a consortium of foreign financial institutions.
|The syndicated loan package is led by the Development Bank of Singapore (DBS) |
The syndicated loan package is led by the Development Bank of Singapore (DBS). Other financial institutions, including the Oversea Chinese Banking Corporation (OCBC) Singapore and the United Overseas Bank Limited (UOB), are also participating in the credit facility.
The $31.5 million syndicated loan disbursed is a part of $50 million financing package provided by the consortium of Singaporean banks to BCG - SP Solar 1, and will be utilised to fund rooftop solar power projects. The remaining $18.5 million will be disbursed for future projects developed by the BGG - SP Greensky joint venture.
BCG Energy believed that the competitive interest rate and favourable timing of the syndicated loan will help the joint venture strengthen its financial footing and diminish the investment pressure associated with rooftop solar projects.
With total assets of around S$743 billion and a brand value of $10.5 billion as of December 2022, DBS has consistently evolved over half a century as a leading bank in Asia, and made a commitment as the first Singaporean bank to sign up to the Net-Zero Banking Alliance.
DBS boasts an extensive network in 19 countries and territories, making it the largest bank in Singapore and the largest in Southeast Asia. The lender’s pledge for a greener, more sustainable future shapes the way it does business, as it looks to implement environmentally friendly practices in its operations.
Meanwhile, OCBC is now the second-largest financial services group in Southeast Asia by assets and one of the world’s most highly rated banks, with ratings of Aa1 by Moody’s and AA- by both Fitch and S&P. OCBC has more than 420 branches and representative offices in 19 countries and regions, while UOB – a Southeast Asia-centric financial institution, is committed to forging a more resilient future.
|BCG Energy is among the leading renewable energy developers in Vietnam |
A number of Vietnamese businesses have run into roadblocks in mobilising domestic and international funds for their operations as a result of recent corporate bond market swings, rigid monetary regulations, fluctuating exchange rates, and skyrocketing interest rates.
Therefore, gaining access to foreign capital flows at favourable interest rates gives businesses a competitive advantage and validates their financial management and capital mobilisation capabilities, in addition to conventional domestic channels such as bank loans, stocks, and corporate bonds.
Pham Minh Tuan, vice chairman of BCG, said that this fresh disbursement was testament to the firm’s commitment in developing sustainable solutions for a greener country.
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