Creating sustainable growth through investing in green energy

Vietnamese Commercial & Industrial power developer CME Solar Investments raises USD 12 million loan from responsAbility climate fund

December 20214 min read

Ho Chi Minh City / Zurich 8 December 2021 — responsAbility, the Swiss sustainable asset manager focusing exclusively on impact investing, provides USD 12 million in long-term senior secured debt financing to CME Solar Investments (CMES) to implement commercial and industrial (C&I) solar projects selling power to multiple sectors including manufacturing, food and beverages and textile in Vietnam. The funding will allow CMES to expand a significant number of projects which will allow its clients to directly consume green energy at zero investment cost. The transaction takes place through a climate finance fund managed by responsAbility.

Established in 2018, CME Group focuses on investing and developing renewable energy across Vietnam. The group engaged in the development of distributed solar for the C&I segment and large-scale solar aiming to achieve 100 MW (megawatt) of C&I solar portfolio by 2022. The company is backed by Vietnam Oman Investment Fund (VOI), a sovereign fund established by Oman Investment Authority and State Capital Investment Corporation of Vietnam. CME Group follows the United Nations Sustainable Development Goals to end poverty, protect the planet and ensure that its development balance social, economic, and environmental sustainability.

The transaction aligns with responsAbility’s goals to support and foster the growth of the development of the C & I segment in Southeast Asia where local bank financing is generally not yet readily accessible for these projects. Vietnam rooftop solar recorded extraordinary growth with more than 9 GW (gigawatt) installed in 2020 and will continue to be an attractive market having larger than 20GW rooftop solar potential given that the country is the center of manufacturing facilities and industrial estates of local firms and multinational corporations.

responsAbility Climate Finance supports renewable energy and energy efficiency projects and companies to promote access to reliable, clean, and affordable energy in developing and emerging countries while catalyzing sustainable development and contributing to the UN SDGs. The funding will enable CMES to expand a significant number of projects which will allow its clients to directly consume green energy at zero investment cost. This in turn will enhance sustainable use of natural resource as well as preventing nearly 1 million tons of CO2 from entering the atmosphere every year.

Chung Dieu Tuan, CEO, CME Solar Investments: “Renewable energy emerged as one of the most preferred sectors for investments in Vietnam. We are excited to partner with responsAbility in our expansion and become the country’s leading solar energy developer and contribute to the journey of developing green energy and creating sustainable value for the community. responsAbility’s global expertise in renewable energy will help us to accelerate our goal of delivering the best solar systems to users and contribute to the government’s efforts to double the use of renewable energy by 2030. Our goal is to create tangible and measurable impact in our community.”

Sameer Tirkar, Principal Climate Finance APAC, responsAbility: “Our investment in CMES is a clear demonstration of our commitment to sustainable energy. We believe strong partnerships can lower the barriers to green financing. We are bullish on the potential of Vietnam’s solar sector, especially adoption by Commercial & Industrial off takers who are keen to minimize operational costs, now more than ever before. CMES has carved a leadership position and a commendable client base in Vietnam. We are excited to enable their current phase of expansion. By providing debt to CMES, the Fund will fill an important financing gap in a sector that is essential to achieving both economic and social development.”

About CME Solar Investments Founded in 2019, CME Solar Investments (CMES) is an investment company specializing in investing and developing renewable energy across Vietnam. CMES is well-positioned to meet the challenges of the rapidly growing national solar market. With a strong in-house engineering capability, national scope, and unmatched responsiveness, CMES commits high-quality for all projects to its clients and community.

About responsAbility Investments responsAbility has invested over USD 11 billion in emerging markets since 2003, and as an impact asset manager, focuses on climate finance, sustainable food production, and financial inclusion. It works closely with players in local markets, as it maintains eight offices around the globe, in order to strategically take steps to directly contribute to reaching the UN’s Sustainable Development Goals. Currently, responsAbility manages USD 3.6 billion in assets invested in over 300 ESG-vetted high-impact companies in nearly 80 countries.

Media Contact Marco Zanchi responsAbility Investments +41 44 403 06 18 marco.zanchi@responsAbility.com Tran Ngoc Minh Khoa CME Solar Investments Contact: +84 98 853 3527 khoa.tran@cmenergy.vn

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This information was produced by responsAbility Investments AG together with its partners to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regards to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This material is provided for information purposes only. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising his/her own judgment. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law.

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