MUFG spearheads financing facility for 100MW Malaysia solar plant

The deal achieved financial closure in December 2020.

MUFG Bank Malaysia has acted as a mandated lead arranger and sole green structuring advisor for a $112m (RM342m) syndicated financing facility for the development of the 100 MW Kerian solar plant in Malaysia, the bank announced.

As green structuring advisor, MUFG has worked closely with multinational energy company ENGIE Asia Pacific to develop a green loan framework that will serve as a basis for the solar plant transaction and will also underpin all of the company’s future greenfield renewable energy projects in the region.

Kerian solar plant is commissioned by a consortium including ENGIE. It is scheduled for commercial operation in Q1 2022 under a 21-year power purchase agreement with Tenaga Nasional Berhad.

The solar plant transaction is MUFG’s second solar deal in the country.

“We are delighted to have participated in this exciting project, which not only allowed us to leverage our strong track record and expertise in the renewables space on behalf of the client, but also contribute to Malaysia’s ongoing efforts at achieving self-sufficiency in clean energy,” MUFG head of structured finance Colin Chen said.