DLA Piper advises lenders on multimillion-dollar financing of Terrenus Energy solar power projects in Singapore

DLA Piper has advised DBS Bank and other lenders in a SGD297.5 million financing provided by five banks to finance a portfolio of solar photovoltaic power projects across Singapore. The portfolio will be developed, owned and operated by Terrenus Energy, a Singapore-based renewable energy solutions provider committed to driving global sustainability.

DBS Bank, Mizuho Bank, and the Singapore branches of Siemens Bank, Shanghai Pudong Development Bank and China Construction Bank are the mandated lead arrangers of a SGD285 million term loan facility, with DBS Bank providing a further SGD12.5 million banker’s guarantee facility. DBS Bank also provided financial advisory to Terrenus Energy and the financial closing took place at the end of April 2024. 

Terrenus Energy will use the loan proceeds to fund the development and construction of ground mounted and rooftop solar photovoltaic power projects in its portfolio, including the build-out of the solar photovoltaic projects it was awarded under Phase 6 of the SolarNova program, an initiative led by the Singapore government which focuses on accelerating the deployment of solar photovoltaic systems in Singapore.

When fully operational, the aggregate installed capacity of Terrenus Energy’s entire portfolio of solar photovoltaic projects is expected to exceed 300 MWp, making it one of the largest solar portfolios in Singapore. The majority of the solar panels will be installed on building rooftops (due to the scarcity of available land in Singapore), and the electricity generated by these solar panels is expected to help building owners achieve net-zero energy consumption in common areas. In addition, renewable energy certificates (RECs) generated from the portfolio will be sold to companies with net zero targets operating in Singapore, to help them offset their carbon emissions and achieve their sustainability goals.

Vincent Seah, Country Managing Partner of DLA Piper in Singapore and a member of the Finance practice, led the transaction. He commented “This transaction further demonstrates DLA Piper’s capabilities in the renewable energy sector. We have a strong track record in advising on the complex financing of large-scale renewable energy portfolios both in Singapore and in the wider Asia – Pacific region. Our ability to deploy an experienced team of renewable energy lawyers in this transaction played an important role in supporting the lenders on the due diligence and structuring of the financing of this high quality portfolio of solar power assets.”

Vincent was supported by senior associate Wei Hong Wong and associates Ruyang Jiang and Darren Foo. Vincent, Wei Hong, Ruyang, and Darren are all members of the Finance practice and based in Singapore.