KASIKORNBANK (KBank) has collaborated with Asian Development Bank (ADB) and responsAbility Investments AG (rA) to provide a 1.1-billion-Baht loan facility to Green Yellow (Thailand) for its investment in the project of Green Yellow Solar 1 for generation and sales of 60.3 MWp solar energy in Thailand. This transaction encompasses a portfolio of 92 solar PV projects (rooftops, solar farm, and solar floating) serving 14 private customers through Solar Power Purchase Agreements (PPA). This cooperative effort will pave the way for Thailand to move towards a net zero society in alignment with the National Energy Plan framework, which focuses on the use of clean energy in order to achieve Thailand's Net Zero Emissions goal within 2065, in conformity to the United Nations' Sustainable Development Goals (SDGs) and the Paris Agreement.
Mr. Tipakorn Saiphatana, Executive Vice President of KASIKORNBANK, noted that, recently, KBank, in cooperation with ADB and rA, granted a project finance in the form of syndication loan amounting to THB 1.1 billion, with each party contributing 33.3 percent, to GreenYellow Solar 1 Project with the term up to 13 years, for generation and sales of 60.3 MWp solar energy in Thailand. This transaction encompasses a portfolio of 92 solar PV projects (rooftops, solar farm, and floating solar floating) serving 14 private customers. This clean energy will be sold at reasonable prices via long-term power purchase agreements (private PPAs) to be concluded with the buyers (the offtakers). GreenYellow Solar 1 Project will be operated by GreenYellow Thailand Co. Ltd., an expert in decentralized solar photovoltaic production in Thailand and other ASEAN nations. This project is expected to introduce a positive change to the environment and lead to an operating cost reduction for buyers. It is also expected to serve as a potential business model that can be extended to multiple areas in Thailand and ASEAN in the future.
As a financial service provider, KBank recognizes its important role in steering the Thai economy under the principles of a Bank of Sustainability. KBank is committed to operating its business with the aim of empowering every customer's life and business. It is also ready to support customers in the transition towards a net zero economy in accordance with KBank's announcement on its Net Zero Commitment. In so doing, KBank will allocate at least 100-200 billion Baht in sustainable financing and investment by 2030. Moreover, the Bank aims to pioneer green banking products and services, in line with the National Energy Plan of the National Energy Policy Council (NEPC), Ministry of Energy, which aims to steer Thailand towards clean energy so that the country could achieve carbon neutrality and net zero emissions by 2050 and 2065, respectively. These endeavors are consistent with the Paris Agreement and the United Nations' Sustainable Development Goals (SDGs), which will allow the Bank and its customers to contribute to the collective efforts in achieving a net zero economy.
Mr. Otmane Hajji, Founder and President of GreenYellow, said the completion of such a financing is a testimony to the new maturity of self-consumption solar in Thailand and more broadly in Southeast Asia, and to our leadership in this area. Given the scarcity of available land and the fact that more than 70% of Thailand's electricity consumption comes from large companies and industry, decentralized solar energy production is indeed the solution that will enable the country to achieve its low-carbon trajectory objectives while continuing its growth dynamic. For our private sector customers, the deployment of such solutions also allows them to substantially reduce their energy bills. The conclusion of this transaction opens up new perspectives for the financing of our strong development ambitions in the region. We would like to warmly thank Asian Development Bank, KBank and responsAbility for their confidence.
Mr. Antoine Predour, Head of Climate Finance at responsAbility Investments AG, said The transaction with GreenYellow is a great addition to our portfolio in distributed solar solutions for commercial and industrial clients in the region. The partnership with GreenYellow presents another notable step in the renewable energy transition in Asia, which is at the core of our investment activity.