CSES Secures RM24 Million Financing Facility for Solar Project from Bank Islam
Kuala Lumpur, 16 Dec 2019 – Cenergi Sunseap Energy Solutions Sdn. Bhd. (CSES); a joint venture between Cenergi EE Holdings Sdn Bhd, Malaysia and Sunseap International Pte. Ltd., Singapore; announced that it had secured a credit facility up to RM24 million from Bank Islam Malaysia Berhad for IRM Solar Sdn Bhd (IRMS).
IRMS, the project company for a five megawatt-peak solar farm in Padang Besar, Perlis, supplies electricity to Tenaga Nasional Berhad (TNB) through a long term Renewable Energy Power Purchase Agreement, which commenced operations on 13 August 2016.
The financing will be utilised for the IRM’s working capital, as well as fulfilling its capital expenditure needs, including to refinance the development and construction cost of the photovoltaic farm in Perlis.
Lawrence Wu, Director of Sunseap International, said: “CSES’ IRM Solar will allow us to increase our presence in Malaysia and expand our customer base to include national utility company, TNB.”
“With the financial support of Bank Islam Malaysia Berhad, we can advance our mission to deliver affordable clean energy to companies and consumers in Malaysia.”
Ahmad Jauhari Yahya, Executive Director, Cenergi SEA Sdn Bhd said: “We are pleased to see that Bank Islam Malaysia shares our vision and is committed to supporting the growth of the renewable energy sector by providing green financing.”
“To secure a facility of this size, right on the heels of the Green Club Facility we were granted earlier, is a testament to the strength of Cenergi’s banking relationships and the depth of Islamic Financial Institutions supporting Malaysia’s Green Energy Sector,” he added.
IRM Solar is a significant milestone for Cenergi-Sunseap JV as it fast-tracks the expansion into solar; it also allows the company to play a more significant part in contributing to the Government’s goal to generate 20 per cent of the country’s energy from renewables.
Mohd Muazzam Mohamed, Chief Executive Officer of Bank Islam, said: “Bank Islam is honoured to be part of an effort that is aligned to the Environmental, Social, and Governance (ESG) principles and spur investment in renewable energy. The financing granted would aid the implementation of ethical and green solutions, enabling a more resilient and sustainable economy.
“We look forward to more collaborations with industry players in our effort in supporting Government’s goal in achieving its target of 20 per cent electricity generation from renewable energy sources by 2025, further mitigating climate change, and improving lives for a greener future.”