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MUFG, Aster sign US$258.7 million solar deal
Debt financing will back construction of Taiwanese floating solar, BESS projects
The Asset 26 Mar 2024

Japan-headquartered MUFG Bank has successfully signed an NT$8.25 billion (US$258.7 million) debt financing agreement with Aster Renewable Energy (Aster), a KKR portfolio company, for the development, construction, operation and maintenance of a 149.2 megawatt-peak (MWp) floating solar photovoltaic panel and a 19.6MWp/78.3 megawatt-hour battery energy storage system (BESS) in the Changbin Industrial Area of Changhua, Taiwan.

MUFG was one of the mandated lead arrangers and bookrunners and the account bank for this transaction that was oversubscribed 1.8 times. It is also the bank’s first floating solar lending project in Asia-Pacific.

The global floating solar industry, the bank notes, is expected to grow at a rate of 15% between 2022 and 2031, with Asia-Pacific expected to lead in its deployment. This aligns with Taiwan’s targets to achieve net-zero greenhouse gas (GHG) emissions by 2050, and its goal of installing solar power capacity of 20 gigawatts (GW) by 2025 and 30GW by 2030.

Randy Hung, the bank’s head of global corporate banking for MUFG Taiwan, adds: “As a leading financial institution firmly committed to Asia-Pacific’s net-zero transition, our role in Aster’s project marks another significant step towards leveraging renewable technology in support of Taiwan’s energy transition journey.”

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