IFC Provides $92M Loan to Winchai for Renewable Energy Expansion in Southeast Asia
The International Finance Corporation (IFC) is providing a loan package of up to THB3,140 million (approximately $92 million) to Winchai Company Limited, a wholly-owned subsidiary of Sermsang Power Corporation Public Company Limited (SSP), to support the development and operation of renewable energy projects in Thailand and the broader Southeast Asian region.
This financing package consists of a THB1,570 million (approximately $46 million) loan from IFC's own account, with the remaining amount secured through a parallel loan from Sumitomo Mitsui Banking Corporation.
The funds will replace an existing US dollar-denominated loan for a 45 MW operational wind power plant in Thailand, as well as provide SSP with the resources to expand its renewable energy investments across the region.
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Strengthening Renewable Energy Infrastructure in Southeast Asia
Varut Tummavaranukub, CEO of SSP, said, “IFC’s long-term local currency financing package and its expertise in environmental and social risk management will enable us to sustainably operate the existing wind project and expand our presence across Southeast Asia, said Varut Tummavaranukub, Chief of Executive Officer of SSP. “
He added, “This investment will also help the company reach our electricity generation target of 1 gigawatt by 2032 and strengthen SSP’s position as a key player in the region.”
Thailand’s growing energy demand, driven by its industrial sector and expanding industries such as robotics, aviation, and digital technology, presents a significant challenge.
The country's draft new Power Development Plan aims to increase renewable energy sources to 51 percent of the energy mix by 2037, focusing on solar, wind, and energy storage.
