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EDPR APAC's parent EDP signs five-year $1 bil green loan with DBS, OCBC, UOB, MUFG

Jovi Ho
Jovi Ho • 2 min read
EDPR APAC's parent EDP signs five-year $1 bil green loan with DBS, OCBC, UOB, MUFG
EDPR APAC's floating solar farm in the Straits of Johor. Photo: Albert Chua/The Edge Singapore
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Multinational energy company EDP and EDP Finance BV have signed a five-year $1 billion green loan facility with DBS Bank D05 -

, Oversea-Chinese Banking Corporation (OCBC) O39 - , United Overseas Bank (UOB) U11 - and Mitsubishi UFJ Financial Group (MUFG), the company announced on April 18.

The loan facility was arranged by EDP, with DBS Bank as coordinator. All four banks are bookrunners and mandated lead arrangers, and MUFG is also facility agent for the loan.

The loan will be fully allocated to EDP Renewables’ Asia-Pacific business (EDPR APAC), headquartered in Singapore and formerly known as EDPR Sunseap. EDP is a Portuguese electric utilities company headquartered in Lisbon. EDPR acquired a 91% stake in solar power company Sunseap in November 2021; the $1.1 billion deal was completed in February 2022.

This loan strengthens EDP’s commitment with the APAC region, aligned with the strategy defined in EDP’s updated 2023-2026 Business Plan, presented in March 2023.

EDP’s five-year plan features a further push into renewable energy. Of its EUR25 billion ($36.57 billion) investment plan, EUR21 billion will be focused on renewables and EUR4 billion on electricity networks.

EDP’s renewables deployment will increase to 4.5 gigwatts (GW) per year, totalling 18GW gross additions by 2026. The company is targeting a renewables installed capacity of 33GW by 2026 with the ambition to reach more than 50GW by 2030.

See also: With 91% stake in Sunseap, EDPR to establish APAC HQ in Singapore with $10 bil investment

EDP is the main shareholder of EDPR with a 75% stake. The renewables company operates in energy generation, networks and supply, with 28GW of total installed capacity including wind, hydroelectric and solar power.

In March, Singapore’s GIC committed EUR1 billion for a roughly 5% stake in EDPR, making GIC the second-largest shareholder of EDPR, after parent EDP.

EDP chief executive officer Miguel Stilwell de Andrade said then that EDPR was valued at some EUR19.5 billion, and EDP would maintain a share of more than 70% in EDPR.

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