Clifford Capital and Pentagreen Capital provide $30M green loan to BECIS

In Singapore, Clifford Capital and Pentagreen Capital, the sustainable infrastructure debt financing platform established by HSBC and Temasek, recently announced a joint green loan collaboration of $30 million with BE C&I Solutions Holding Pte. Ltd. (“BECIS”) to catalyse the construction of distributed sustainable bioenergy projects across Southeast Asia and India.

The borrowing entity is BECIS Bioenergy, a subsidiary of BECIS, a leading provider of energy-as-a-service solutions in Asia.

The loan will finance 14 individual decentralised installations across Indonesia, Thailand, Cambodia, the Philippines and India. The projects convert agricultural waste and other sustainably sourced feedstock into renewable steam, which is delivered to industrial customers under offtake agreements, and are expected to result in 114,404 tons of CO2 emissions avoided annually. The installations are located at industrial and manufacturing sites operated by established local and multinational companies across industries, including food and beverage, consumer goods, construction materials and agricultural products.

BECIS Bioenergy applies Supplier Due Diligence and Responsible Sourcing Criteria to installations consistent with the key principles of international standards, such as the Roundtable on Sustainable Bioenergy’s Principles and Criteria. This includes independent third-party assessment to ensure standards are well maintained.

Clifford Capital and Pentagreen are providing a $30 million Secured Green Loan Facility on a 50:50 basis. Clifford Capital, as the Structuring Arranger, together with Pentagreen Capital as the Green Loan Coordinator, arranged an innovative dual-tranche structure where Pentagreen’s tranche is subordinated to the commercial tranche provided by Clifford Capital, and has a differentiated repayment profile. The combined solution unlocks the full required financing package for the Borrower, catalysing growth in energy efficiency and sustainability activities in the region. In anticipation of future growth, the financing comes with an accordion feature to allow the facility size to be increased to $50 million. The committed $30 million has the potential to unlock $60 million in project value.

The financing has been structured as a Green Loan under BECIS’ Green Loan Framework, which is aligned with the Green Loan Principles 2023, administered by the Asia Pacific Loan Market Association and Loan Syndications and Trading Association. A Second Party Opinion has been issued by Sustainalytics.