CME Solar and responsibility signed US$20 million loan

Wednesday, Aug 23, 2023 15:18

Representative of responsAbility (Switzerland) and CME Solar at the online loan financing signing ceremony. — Photo courtesy of CME Solar

CME Solar and responsAbility have signed a long-term senior secured debt financing contract of US$20 million, positioning it as the largest investment into non-financial institution in Việt Nam so far.

This is the second facility of responsAbility invested into CME Solar, bringing the total investment to $32 million.

After the successful initial funding phase provided by responsAbility in 2021, CME Solar has achieved a remarkable triumph in upholding its commitments to investors. The pinnacle accomplishment of this solar power system is epitomised by a notable Foxconn Solar Project (31.5 MWp) in Bắc Giang and Bắc Ninh, which received full funding from responsAbility. This project stands as a flagship endeavour, characterised by the implementation of top-tier technical practices, including the utilisation of N-type PV technology across the entire project.

This funding injection empowers CME Solar to embark on a diverse array of projects, with a focal purpose of enhancing commercial and industrial (C&I) solar initiatives across a wide spectrum of sectors in Việt Nam. These sectors include manufacturing, electronics, food, beverages, and textiles.

Chung Diệu Tuấn, CEO of CME Solar Investments, emphasised a rising need for rooftop solar installations in Việt Nam's FDI manufacturing domains, especially in electronics/semiconductors, garment and textile, and global MNC consumer sectors.

With government support, he believed in the significant growth potential of rooftop solar energy development in Việt Nam in the upcoming decade.

The second facility allows CME Solar to launch into markets with an impressive capacity of 50 MWp. The sizable capacity not only contributes to a reduction of 51,200 tonnes of CO2 annually but also allows end-users to claim around 70,000 Renewable Energy Certificates (REC). This alignment with the UN's Net Zero targets underscores the commitment to a more sustainable and eco-friendly future.

A responsAbility representative said: “Our investment in CME Solar is a clear testament to our commitment to sustainable energy. Building on the success of the first phase, we believe that strong partnerships can reduce barriers to green financing. We are highly optimistic about Việt Nam's solar sector, especially among C&I off-takers who are increasingly focused on minimising operational costs.”

CME Solar is a member of CME Group, which has been established only for four years, yet widely recognised as a thriving entity in Việt Nam's energy market. — VNS

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