For Accredited Investors Only
Investment Details
SDAX launched an opportunity to participate in the Working Capital Financing of a Singapore based company that builds, owns and operates solar photovoltaic (“PV”) systems for commercial, industrial and public sites in the Asia Pacific region. They are a solar independent power producer (“IPP”).
About the Issuer and Loan Purpose
The Issuer is a Singapore-based solar independent power producer (“IPP”) that builds, owns, and operates solar PV systems for commercial, industrial and public sites in the Asia Pacific region. The Issuer is part of a Malaysian Group. The Group’s businesses are in power, metal, hospitality and property with total equity of (unaudited) SGD 384m as of 31 December 2021. The ultimate parent of the Group is a family-owned private company.
The purpose of the Loan is to construct solar PV systems (related to 5 Power Purchase Agreements (“PPA”)) which was previously financed through the SDAX platform. These loans to be refinanced were disbursed in December 2020 and January 2021, respectively. Three of the projects are completed and have been generating income since October 2021. The remaining two projects are scheduled for completion within the month of June 2022.
Investment Highlights
- Track record in solar energy. The Issuer has completed 26 projects in Singapore totaling 27MWp. 19 of these completed projects are now financed by a Financial Institution in Singapore.
- Loan is secured by solar PV systems, assignment of the PPAs and the receivables of the off-takers. The loan-to-value (“LTV”) is circa 62%. The PPAs have a nominal value of SGD 19 million based on the EBITDA for the duration.
- Three revenue-generating projects since October 2021. The cashflow from these projects are currently channeled to service the loan interest of 6% per annum. The remaining two projects are scheduled for completion within the month of June 2022
Security Package
- Debenture over SPVs comprising of solar PV systems, related equipment and assets.
- Assignment of the PPAs and their receivables from the offtakers.
- Corporate guarantees from Issuer’s immediate and ultimate parents.
- Personal guarantees from three shareholders of the ultimate parents who are the ultimate beneficiary owners.
Product Suitability
What would you gain or lose in different scenarios?
- Best Case Scenario
- Investor gets to make a return based on the agreed interest rate offered in addition to the investment principle committed to participate in the Term Loan Facility.
- Worst Case Scenario
- In the event of default, recovery from the outstanding loan amount will be by way of liquidating assets that are being pledged as security for the Term Loan Facility.
Investor Profile for this issuance should be MODERATE.
The nature of the investment is MODERATE.
Risk & Reward involved with the investment is MODERATE.
