JAKARTA (TheInsiderStories) – Singapore’ Vena Energy, independent power producers and pure renewable energy company, has issued green bond with total amount of US$325 million, said the company on Thursday (02/27). The five-year have coupon rate 3.133 percent and issued under the company’ Euro Medium Term Notes Program established in November 2019.
The company has the 72-megawatts Tolo wind project in Jeneponto, South Sulawesi with a total of 20 wind turbines. The power plant is capable to supply up to 160,000 households with renewable energy per year and reduce approximately 220,000-tonnes of greenhouse gas emissions.
According to the producer, this is the first corporate US Dollar green bond issuance from a Singapore-based company. The green bond, rated BBB- by Standard & Poor’s and listed on the Singapore Stock Exchange.
The notes proceeds will be used to refinance existing corporate loans for the development, construction and operation of eligible green projects in accordance with Vena Energy’s green financing framework, which was established in 2018. The financing framework has been independently evaluated by Vigeo Eiris and Japan Credit Rating Agency.
The bonds issuance was facilitated by Crèdit Agricole CIB, DBS Bank Ltd, ING and MUFG serving as Joint Global Coordinators and Joint Lead Managers. ABN AMRO, Banca IMI, BNP PARIBAS and SMBC Nikko served as Joint Lead Managers. Crèdit Agricole and SMBC Nikko also served as joint green structuring advisors.
Nitin Apte, CEO of Vena Energy, commenter, “We are proud of the positive reception from global investors experienced during our roadshows across Asia and Europe, as we reaffirmed our commitment to play a leading role in developing and generating clean renewable energy to accelerate the transition to a low carbon economy across the Asia-Pacific region.”
According to Indonesian government, the Tolo and other wind farms will provide reliable electricity to South Sulawesi and help increase the portion of clean energy in the country’ power supply. The country has set a target of 23 percent of energy uses based on renewable by 2025.
Indonesia has abundant sources of renewable energy, including solar, wind, and biomass, but it lags many of its Asian neighbors in converting them into electricity. The wind power project will show a way forward by demonstrating how to successfully integrate variable renewable generation into the country’ main power grid run by state power producer PT Perusahaan Listrik Negara.
Eastern Indonesia, where power grids are small, isolated, and less reliable, represents the biggest challenge to Indonesia’ ultimate goal of universal and sustainable access. In 2018, only 88 percent of residents in Gorontalo, 84 percent in Central Kalimantan, and 62 percent in Nusa Tenggara Timur have access to electricity, compared with more than 90 percent in Java and Bali.
while, Asian Development Bank opined, turning this around could spur economic growth in eastern Indonesia, as reliable energy can help the region develop high-value agriculture, fisheries, tourism, as well as small and medium-sized enterprises.
In recent years, ADB said has focused on improving the state-owned electricity grid across Indonesia’ islands, including Sumatra, Java, West Kalimantan, Sulawesi, and Nusa Tenggara, to increase access, as well as the share of grid-connected variable renewables, including wind and solar.
Vena Energy managed over 11 giga-watts renewable power acros the in Australia, India, Indonesia, Japan, South Korea, Philippines, Taiwan and Thailand.
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