Recently, a syndicate comprised of BNP Paribas, Societe Generale (China) Limited, Crédit Agricole Corporate and Investment Bank and Natixis Bank, provided a cross-border project financing of US $80 million to Total Energies Envision Energy Services & Solutions. In the expanding area of China’s industry and commerce, this is the first non-recourse project financing in the domestic new energy field and the first green loan in the distributed photovoltaic field.
Total Energies Envision Energy Services & Solutions is a joint venture formed through the cooperation of Total Corporation, a diversified energy company, and Envision Group, a leading green technology company. Total Energies Envision Energy Services & Solutions has risen to prominence in China's distributed PV green energy industry since its establishment in 2019, and it is one of the top three operators in investment and development of distributed power plants in China, providing intelligent green distributed energy solutions to numerous domestic and foreign enterprises.
One of the pain points of distributed PV financing is that the scale of single projects is small, and the cost of single financing is high. This project creatively integrates several projects in Total Energies Envision Energy Services & Solutions into a unified asset package for financing, and successfully reduces the financing cost for enterprises. The capital pool model and subsequent entry mechanism are designed for the convenience of sustainable financing for project companies within the group. This project provided non-recourse project financing with the revenue of the project as the main source of repayment, and the borrower provides no other security. The deal structure created in this project sets a significant benchmark for the financing of future renewable energy projects in China.
As the counsel to the syndicate, JunHe provided full support to the client throughout the whole process and designed the financing structure, undertook due diligence, and drafted the deal documents. JunHe’s team effectively communicated and cooperated with the syndicate and the borrowers, which ultimately lead to the successful implementation of the financing. JunHe’s team has been highly recognized by the syndicate and the borrowers for its efficient, rigorous and steady work style and meticulous, professional service attitude.