TRIREC achieves first close, and led a S$27 million stake into solar energy firm Sunseap Group as its first investment.
Investment by TRIREC spurred on by opportunities in the renewables industry as countries, governments and businesses alike seek to increase support for adoption of renewable energy technologies that build a sustainable, long-term ecosystem.
Singapore – August 5th, 2015 – TRIREC Pte Ltd, a Singapore-based investment holding company, today announced achieving first close in June 2015. It counts venture investment company Enspire APUS Investments and the Hong Kong based Chow Tai Fook Enterprises Limited among its first round investors.
TRIREC is a tailor-made investment holding vehicle, which will invest across the capital structure, from project finance debt to common equity, into renewable and clean tech companies from around the world. The focus stems from the firm’s belief that there is and will continue to be a growing need to replace conventional sources of energy with clean and sustainable methods of generating energy.
“TRIREC’s investment philosophy is to identify clean energy companies with vision, innovative business models, and a strong sense of commitment. We are looking forward to a long term synergistic partnership with Sunseap, as well as future companies looking to join the TRIREC family”, commented by Mr Chay Kwong Soon, Director & Advisory Council Member of TRIREC and Chairman of Enspire Capital, a veteran investor in the technology space.
Both government efforts and improved commercial viabilities have also been monumental in driving paradigm shifts within the energy sector. The initiatives to reduce tariffs for renewable energy production and the introduction of policies to reduce the reliance on conventional energy producing will continue to allow the renewables and clean tech industry to develop. TRIREC’s investment emphasis is on Asia Pacific and North America due to its development potential and advanced technology in the renewable and clean tech industry.
The firm received strong backing from a diverse group of investors from different industries, including asset managers and investment arms of global conglomerates.
TRIREC is supported by an investment team comprising of private equity, advisory and corporate finance professionals, with decades of accumulated industry knowledge and know-how. Mr Melvyn Yeo, Director of TRIREC, also an early-stage investor in Sunseap noted that the success of the first close signifies the investors’ endorsement of TRIREC’s investment team as well as the commercial viability of its pipeline transactions, “TRIREC will leverage on the experience and network of the investment team and board of directors to deliver the projected financial returns while enabling the renewables industry to access funding and develop.”
TRIREC seeks to achieve attractive returns through a mixed and balanced approach of yield-based and equity investments. TRIREC is also currently seeking to raise further capital commitments from new investors before a final close for other projects in its investment pipeline.
The firm’s first investment is in a leading solar power generator and distributor in Singapore.
TRIREC led a Series B investment round, investing up to S$27 million into Sunseap Group for a minority stake in the company. The investment in Sunseap Group represents the maiden step the team took towards managing a comprehensive portfolio of high potential companies.
“Sustainable investing is something we are increasingly looking towards, and Asia is a huge market with a growing demand for energy. We are excited about our partnership with Sunseap, which will help to bring affordable clean energy to the region”, commented by Dr Adrian Cheng, Board Director, Advisory Council Member of TRIREC, and prominent entrepreneur.
With the first closing, TRIREC is currently evaluating pipeline investment opportunities on 5 different sectors of renewable energy – generation, efficiency, recycling, energy management and storage. For further enquiries, please contact email@example.com.
TRIREC is a Singapore based investment holding company with key focus in equity and high yield investments in renewable energy and clean technologies. TRIREC is structured as an investment company with 2 key units through which it executes its investments. TRIREC EquityCo focuses on equity investments which provide significant long-term upside return potential. TRIREC YieldCo focuses on yield-based investment which provides consistent cash flows to investors. This mix of investments provides a balanced approach for TRIREC’s investment return.
Sunseap Group successfully completes re-organisation of the group and raises Series-B Equity and additional debt funding to bring enlarged enterprise value to S$230 million
Proposed equity funding of up to S$27 million being injected into Sunseap Group
Affiliates of Sunseap Leasing have been re-organised under a holding company, Sunseap Group –namely, Sunseap Leasing Pte Ltd (solar generation and licensed energy wholesaler) Sunseap Energy Pte Ltd (clean energy retail and licensed energy retailer) and Sunseap International Pte Ltd (for markets outside of Singapore).
Singapore – August 5th, 2015 – Sunseap Group, Singapore’s largest and leading provider of solar energy, announced today that it had signed agreements for further equity and debt capital to fund its expansion plans.
The additional funding was raised through a combination of a convertible preference share investment from TRIREC and its group of institutional co-investors including and not limited to Enspire APUS Investments and the Hong Kong based Chow Tai Fook Enterprises Limited, as well as a loan facility from DBS Bank. The injection of S$77 million will be primarily used to promote and accelerate adoption of solar power as an alternative source of energy in Singapore and fund capital expenditures.
Prior to the fund raising exercise, Sunseap Leasing has more than 80MW of contracted solar project capacity, which has been deployed or is in the course of being deployed. Current clients include HDB/Town Councils, Singapore American School, Raffles Institution, the United Technologies Group, Jurong Port, ABB, Panasonic, Eagle Services Asia, Pratt & Whitney, Takasago and Cambridge Industrial Trust, just to name a few.
The fund raising transaction demonstrates the long term viability of distributed solar generation, enhancing Sunseap’s capabilities to roll out our pipeline of projects and encourage more businesses and organizations to join the cause to go green and yet be economically better off at the same time.” The upbeat sentiments of the Company’s prospects were further echoed by Frank Phuan, Director of Sunseap Group: “With the Economic Development Board of Singapore planning for government agencies to increase solar power usage to 350MWp by 2020 from current levels of 33MWp, Sunseap Group is in a favorable position to capitalize on future opportunities. This is evident in a recent contract secured with HDB to install solar photovoltaic (PV) systems on 680 HDB blocks.”
The funding also highlights an increasing trend of investor familiarization with solar power as a reliable source of energy. Increased funding for the local solar industry allows renewable energy companies like Sunseap to offer clean tech solutions to a broader range of customers at competitive prices. The TRIREC led equity investment and DBS bank’s debt funding comes about 18 months after a prior S$50 million round of funding from Goldman Sachs , a capital funding move unprecedented in the local solar industry.
TRIREC Pte Ltd is a Singapore-based investment company with key focus in equity and high yield investments in renewable energy and clean tech. Conceived amidst challenging capital raising restrictions by clean tech and renewable firms, it aims to provide across the spectrum capital solutions to high potential firms operating in this industry. “We are thrilled with the collaboration with TRIREC and DBS Bank and to have such progressive financing partners for the expansion of clean energy project deployment. More projects are expected from both public and private sectors, Singapore and abroad”, commented by Lawrence Wu, Director of Sunseap Group
Ms Tan Soh Leng, Executive Director of Institutional Banking Group at DBS Bank, said: “We are pleased to be able to support Sunseap in its efforts to become a leading solar energy player with this new round of capital funding, building on the partnership forged in 2012, when we financed Singapore’s first solar leasing project with Sunseap. We are optimistic about the green energy industry in Singapore, and believe in the growth potential of the enterprises in this industry.”
As part of the group’s effort to introduce clean and sustainable energy to a larger audience, Sunseap Energy, a subsidiary of the Group, obtained the Electricity Retail License from the Energy Market Authority (EMA) of Singapore earlier in the year. The license allows for the retail of clean energy to building owners.
Offsite PPA is an additional innovative business model currently being explored to create the possibility of meeting the clean energy demands of energy-intensive operations, such as data centres, by indirectly consuming clean energy from solar energy generated on an unrelated site.
Formal completion of the fund raising exercise is expected to take place in August. Sunseap Group also expects to make further announcements on exciting pipeline projects in the near future. Businesses and organizations interested in Sunseap’s energy services can visit www.sunseap.com or contact firstname.lastname@example.org.
About DBS Bank
DBS Bank is a leading financial services group in Asia with focus on consumer, institutional and treasury services. Its consumer banking/wealth management segment offers a range of banking and related financial services to individual customers. The company’s institutional banking segment provides financial services and products to institutional clients, including bank and non-bank financial institutions, government-linked companies, corporate, and small and medium-sized businesses. The treasury segment offers treasury services to corporations, institutional and private investors, financial institutions, and other market participants. It operates approximately 250 branches across 17 markets in Asia. The company was founded in 1968 and is based in Singapore.
About Sunseap Group
Sunseap Group is the leading solar energy system developer, owner and operator in Singapore. The Group operates through 3 key units, Sunseap Leasing, Sunseap International and Sunseap Energy. Sunseap Leasing is the first and largest solar leasing company in Singapore. It provides clean energy through zero cost solar solutions at rates competitive against traditional grid prices to its clients. Sunseap International employs a similar business model to Sunseap Leasing but targets the international markets. Sunseap Energy is embarked to provide clean energy solutions to building owners, originating clean energy from solar systems to its clients through its distribution generation. The unique business model allows green minded companies and individuals to utilize clean energy even if their buildings are not suitable for on-site solar installations. Visit the company online at www.sunseap.com
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