CME Solar welcomes injection of $20 million from the responsiAbility Investments Fund

A long-term senior secured debt financing contract worth up to $20 million was signed last week by responsAbility Investments and CME Solar Investment.

A solar power project deployed by CME Solar at the Foxconn facility in Bac Giang province

The virtual signing ceremony confirmed responsAbility is investing in a second CME Solar facility, positioning it as the largest investment into a non-financial institution in Vietnam. The figure means that the total investment from responsAbility into CME Solar has reached $32 million, following the first injection in 2021.

Positive outcomes stemming from an initial investment made two years ago have underscored a broad spectrum of commitments, spanning from technical prowess to meeting standards in environmental, social, and governance (ESG) criteria. The robust groundwork helped pave the way for responsAbility to reinvest with confidence.

CME Solar has upheld its commitments to investors. The pinnacle has been a Foxconn solar project (31.5MWp) in Bac Giang and Bac Ninh provinces, which received full funding from responsAbility. The project stands as a flagship endeavour, characterised by the implementation of top-tier technical practices, including the utilisation of N-type photovoltaic technology across the entire project.

With robust financing and procurement strategies, as well as a steadfast focus on health, safety, and the environment, the project was executed within only three months, with zero environmental incidents.

The new funding injection empowers CME Solar to embark on a diverse array of projects, with a focal purpose of enhancing commercial and industrial solar initiatives across a wide spectrum of sectors in Vietnam, including manufacturing, electronics, food and beverages, and textiles.

CME Solar has not set limitations on geographical borders, hence eyeing to bolster its coverage across Southeast Asia, guided by a well-defined roadmap and robust strategic plans.

Chung Dieu Tuan, CEO of CME Solar Investment, is confident about the market outlook, emphasising a rising need for rooftop solar installations in Vietnam’s foreign-invested manufacturing domains, especially in electronics/semiconductors, garments and textile, and global multinational consumer sectors.

“With government support, I firmly believe in the significant growth potential of rooftop solar development in Vietnam in the upcoming decade,” Tuan said, while also acknowledging the dedication of in-house teams in meeting all standards requested by responsAbility. He foresees CME Solar to deliver beyond the planned targets for this year.

The second facility allows CME Solar to launch into markets with an impressive capacity of 50MWp. The sizable capacity not only contributes to a reduction of 51,200 tonnes of CO2 annually, but also allows end-users to claim around 70,000 renewable energy certificates. This alignment with the United Nations’ net-zero targets underscores the commitment to a more sustainable and eco-friendly future.

“Our investment in CME Solar is a clear testament to our commitment to sustainable energy,” said Stenfan Issler, head of Direct Investments and Climate Finance at responsAbility. “Building on the success of the first phase, we believe that strong partnerships can reduce barriers to green financing. We are highly optimistic about Vietnam’s solar sector, especially among commercial and industrial off-takers who are increasingly focused on minimising operational costs.”

CME Solar is a member of CME Group, which was established in 2019, and its primary focus is on investments for advancement of distributed rooftop solar solutions for the commercial and industrial sector in Vietnam. CME Solar has installed up to 100MWp as of mid-2023 and aims to increase this be an additional 150MWp in 2024.

In line with its development, CME Solar is dedicated to adhering to the ESG standards, ensuring a harmonious equilibrium among social welfare, economic growth, and environmental preservation.

Do Huong

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