TEESS closes a US$80M non-recourse financing with BNP Paribas, Societe Generale, Natixis and Crédit Agricole CIB for a 170 MW solar portfolio in China

China, 23 August 2021 – TEESS, a 50/50 joint venture company established by TotalEnergies and Envision, has reached financial close of a first part of a total US$80 million non-recourse debt from BNP Paribas (BNPP), Societe Generale (SG), Natixis and Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) for a 170 megawatts (MW) portfolio in China. It is the first international non-recourse project financing in China’s renewable sector, and the first green financing project in the country’s Industrial & Commercial (I&C) solar industry. This is also the first to be certified by a third party, Sustainalytics, the world's leading environmental, social and corporate governance (ESG) rating company.

TEESS green financing framework was supported by BNPP, SG, Natixis, and Crédit Agricole CIB, with the shared commitment to support the development of renewable energy in China. The success of this financing highlights TEESS and its shareholders' global value strategy in the field of renewable energy. Its innovative financing structure has also set a new benchmark for China's renewable energy non-recourse project financing.

Ranked among China’s tier-one companies providing on-site distributed generation solar solutions, TEESS has currently 140 MW in operation, supporting 65 I&C customers in China, including leading worldwide companies. With the ambition to become one of China’s largest service providers of the distributed solar sector, TEESS targets a portfolio of over 500 MW of projects in operation in the next two years.

"Based on our corporate mission and strategic goals, we have built an open and transparent business operation system. Adhering to the principle of sustainable development, we hope to play a more active role in green investment projects in the future, continue to promote China's zero-carbon economic transformation, and create long-term sustainable value for the environment, society and enterprises," said Sun Jie, CEO of TEESS.

“Distributed solar projects tend to be individually small-scale and therefore uneconomical to finance separately, but in this case we were able to offer an innovative structure to fund this portfolio of rooftop solar projects on a non-recourse basis. This deal is expected to pave the way for financing further such projects in China,” said Shalen Shivpuri, Co-Head of Loans and Specialised Finance, APAC at BNP Paribas.

“We are delighted to support TotalEnergies and Envision with this inaugural financing for their fast-growing distributed generation solar portfolio in China. We expect this asset class to grow exponentially in China over the next few years, enabling Chinese industrial and commercial companies to embark on their own energy transition journeys. TotalEnergies and Envision are ideally positioned to be leaders in this sector and we look forward to continued cooperation with them,” said Daniel Mallo, Head of Natural Resources and Infrastructure, Asia Pacific, Societe Generale.

“Natixis is very pleased to have supported its key clients, TotalEnergies and Envision, in realizing this innovative, landmark transaction. Providing unique solutions to clients who are committed to enhancing the sustainability of their activities, through deals such as this, demonstrates how green and responsible financing can be a driving force for environmental change in every sector,” said Kwong-Wing Law, Managing Director & Head of Infrastructure and Energy Finance, Natixis Corporate & Investment Banking, Asia Pacific.

“Supporting our client’s energy transition projects, in particular renewable energy projects, is an integral part of the strategy as well as core competence of Crédit Agricole CIB. We are very pleased to play a key role in TEESS’ development of this significant renewable energy portfolio. This transaction will no doubt set an important benchmark for future renewable energy project financing in China,” said Romain Voisin, Managing Director, Head of Energy and Infrastructure Asia of Crédit Agricole Corporate and Investment Bank.