MUFG Bank achieves green certification for solar farm in India

MUFG Bank has acted as sole green structuring advisor for a $333 million financing deal for SoftBank's latest solar project in India

MUFG Bank on Tuesday said that it has acted as sole green structuring advisor for a USD 333 million financing deal for SoftBank's latest and largest solar project in India.

This marks the first green certification of a solar project loan for both the client and the country, and underscores both MUFG's sustainable financing capabilities as well as commitment towards partnering clients in their environmental, social and governance (ESG) objectives, said the company in a statement released in Singapore.

The 900 megawatt-DC solar farm in the Phalodi-Pokhran Solar Park in Rajasthan is the seventh project in line to be commissioned by SB Energy Holdings Limited (SB Energy), a majority-owned subsidiary of SoftBank Group.

MUFG also acted as original mandated lead arranger and lender, bookrunner, facility agent, intercreditor agent, account bank and hedging bank. This is the third project financing undertaken by MUFG for Softbank in India. The transaction closed in August, and with the bank's assistance, attained green certification on 22 December 2020.

Green certificates are given for the production of power from renewable sources like solar.

"We would like to congratulate SoftBank for achieving yet another milestone towards its sustainability agenda," said Colin Chen, MUFG's Head of Structured Finance, Asia Investment Banking Division.

"SB energy is committed to maintaining the highest quality ESG principles in all of our projects," said Vijay Venkatachalam, CFO of SB Energy.