ING announced that it has made a $75 million green loan to Singapore-based Cleantech Solar, the largest of its kind to date in the Asia Pacific commercial and industrial (C&I) renewables sector.

Proceeds of the loan will go towards financing Cleantech’s expansion across Southeast Asia. Cleantech is already one of the leading C&I solar photovoltaic (PV) developers in the region. ING stated that the financing will support more than 500 megawatts of solar power projects, which will benefit local and multinational companies across Southeast Asia with reliable and long-term cost-saving clean-energy solutions.

Jasmine Choo, Cleantech Solar’s chief operating officer, says the transaction with ING will enable the company to speed up its portfolio expansion in the region to benefit even more customers with a compelling solution for their clean energy needs.

Demand for electricity, particularly from renewables, in Southeast Asia is rising rapidly. According to the International Energy Authority, demand is forecast to see an average growth rate of six percent annually, with renewable energy meeting just around 15 percent of the demand.

Adrian Lian, ING’s lead for Renewables and Power in Asia Pacific, said:

“We consider the Cleantech Solar team to be best-in-class, in a C&I sector that has experienced tremendous growth.

“A strong technical grounding and resolute customer focus have been instrumental to their success. ING is thrilled to have combined Cleantech Solar’s strengths with ING’s renewables expertise to arrange a specially structured solution to support their business.”

Krista Baetens, ING’s head of WB in Asia Pacific, added:

“We’re delighted to be able to support Cleantech Solar, which counts numerous RE100 initiative members in its customer base. This loan is also aligned with the global Green Loan Principles. We’re optimistic that our partnership will contribute to a greener impact within the region and beyond.”

ING has become increasingly active in the sustainable financing space, helping finance numerous renewable energy projects. In 2020, the company has made several green loans, including a solar PV project in Japan, and in February ING acted as joint global coordinator for pure-play renewable energy developer Vena Energy’s inaugural green bond issuance.

Year-to-date, ING ranks third in terms of the number of green loans or sustainability-linked loans issued, with a total value of $7.3 billion, according to data from Bloomberg.