Sunseap obtains S$85.8m green loan from DBS and UOB

CLEAN energy solutions provider Sunseap Group obtained an S$85.8 million green loan for its SolarNova 4 project, with DBS and UOB each providing half the loan amount.

In a press statement on Monday (Nov 1), Sunseap highlighted that SolarNova 4 is the largest clean energy project in Singapore to date, and it will install solar photovoltaic systems across more than 1,200 public housing blocks and 49 government sites.

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. This framework is utilised in the loan extended by DBS and UOB.

SolarNova 4, which potentially has a capacity of up to 102 megawatt-peak (MWp), is estimated to generate 96,775 megawatt-hour, equivalent to powering 20,400 4-room Housing Board (HDB) flats and potentially offsetting more than 68,583 tonnes of carbon emissions per annum, Sunseap noted.

Facebook previously signed a virtual power purchase agreement (VPPA) with Sunseap, to purchase renewable energy credits from the excess energy generated from solar panels in the SolarNova 4 project.

The excess solar energy from the project is exported to the power grid and the renewable energy credits from this exported energy are sold by Sunseap to Facebook under the private VPPA deal.

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The solar energy generated will support the tech company's operations in Singapore, including Facebook's first custom-built data centre in Asia.

Sunseap also won the tender for Phase 4 of the SolarNova project in 2019 and installations started in 2020. The SolarNova programme is a whole-of-government effort led by the HDB and the Economic Development Board (EDB) to promote and aggregate demand for solar photovoltaic systems to achieve economies of scale and drive growth for Singapore's solar industry, said the group.

Under the SolarNova programme, HDB has committed a total solar capacity of 330 MWp for 6,901 HDB blocks, and a solar target of 540 MWp by 2030.

Chief financial officer of Sunseap, Keith Lim, said that global warming remains "a clear and present danger" to life on Earth, and that Sunseap will continue to continue to roll out clean energy projects in Singapore and across the region.

Group head of SME banking at DBS, Joyce Tee, said: "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."

The SolarNova 4 project is a powerful demonstration of how sustainability objectives can be incorporated into business strategies, a trend that is on the rise, noted Eric Tham, head of group commercial banking at UOB.

"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," added Tham.

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