Hunton Andrews Kurth Advises Constant Energy in Financing of Private Solar PV PPA Projects in Thailand

Hunton Andrews Kurth LLP acted as borrower’s and sponsors’ counsel for Constant Energy Group (“CE Group”) on THB 1.5 billion (approximately USD $50 million) long-term senior secured loan facilities provided by TMB Bank Public Company Limited, one of Thailand’s leading banks. To date, this is the largest THB denominated green loan, and will allow CE Group to finance its major upcoming private solar PV projects aimed at selling solar power to several top-tier commercial and industrial Thai companies.

The limited recourse project financing, which stands out as one of the few of its kind in the private solar PPA domain in Thailand, underscores our ongoing commitment to facilitate private investment in Thailand’s emerging renewable energy market.

The CE Group is one of Thailand’s pioneering solar power producers that provide access to reliable, affordable, and clean energy. It has engaged in a wide range of successful ground-mount, rooftop and floating solar energy projects across Thailand. In recognition of the CE Group’s prominent position in Southeast Asia’s solar energy sphere, Olympus Capital Asia through its Asia Environmental Partners program provided growth equity investment to the CE Group in January 2020 and the Luxembourg based Global Climate Partnership Fund provided the CE Group with a USD $15 million green loan one month later. Hunton Andrews Kurth also assisted the CE Group on both of these capital-raising transactions.

Partner Chumbhot Plangtrakul led the Hunton Andrews Kurth team. Associates Sudarat Sattayakawee, Jitranut Narkmai, Thaphanut Vimolkej and lawyer assistants Chayakorn Boonsri and Sasipim Supapa assisted in the structuring, negotiation and drafting of the financing and security documentation with TMB. The team will also be assisting the CE Group with meeting the drawdown conditions for the loan facilities after the Signing Ceremony for the loan agreement on December 18, 2020.