Malaysian renewable energy firm Cenergi RE has entered into a Green Club facility of up to RM100 million with MIDF Investment Bank and China Construction Bank Malaysia. The proceeds will be used to fund the company’s biogas-to-energy (BTE) projects in the country.
Speaking at the signing ceremony, Ernest Navaratnam, Group CEO of Cenergi SEA Sdn Bhd, the holding company of Cenergi, said: “The Green Club Facility, the first of its kind secured by the company, is a significant milestone for Cenergi that reflects a vote of confidence in our strengths and growth potential from the financial market.”
“We are pleased that MIDF Investment Bank and China Construction Bank Malaysia have come together to help us meet our biogas financing needs, enabling us to increase our contribution to MESTECC’s Green Energy goal to generate 20% of the country’s energy from renewable sources.”
“Cenergi’s proven track record and impressive project pipeline underscores its standing as amongst the leaders in the Malaysian renewable energy sector. MIDF Investment Bank, has been among the pioneers in the provision of green financing in Malaysia. Today’s signing sets yet another significant milestone for us in our efforts to build a greener economy. It signifies our continued commitment to advance the green finance agenda to better serve the needs of our society and to achieve sustainable growth for the nation’s future generations.” said Datuk Dominic Silva, CEO of MIDF Investment Bank.
Jade Chong, CCB Head of Global Banking & Markets said, “The Green Club Facility represents China Construction Bank’s commitment towards supporting key Green initiatives undertaken by the Malaysian public and private sectors. Through collaborations with such spirited and focused quality partners such as Cenergi, we hope to make a difference to the local communities and environment in which we operate. We will continue striving towards a greener, more sustainable world for all.”
Apart from enabling Cenergi to build its financial track record, the funding aims to spur the company’s growth as a developer in the renewable energy and sustainability sector.
“The fresh injection also means we are able to expedite our expansion strategy,” Ernest added.
As a subsidiary of Khazanah Nasional Berhad, Cenergi is one of the largest grid-connected Palm Oil Mill Effluent (POME) biogas players in Malaysia. It owns and operates six biogas plants that together generate 8.6 MW of power.
As of July 2019, Cenergi has generated a total of 135,090 MWh of renewable energy to Malaysia’s national grid and has avoided 134,930 tonnes of carbon dioxide.