Sanchuan Energy Hydro Power Project

Societe Generale, alongside another bank, successfully closed an RMB 280 million 5-year senior secured structured financing to a subsidiary of Sanchuan Energy Group in China, one of the fastest growing renewable energy markets in the world.

This is one of the few RMB denominated senior secured structured financings in the Chinese renewable market in recent years where the loan is based on a notional tenor in excess of 10 years. The financing is underpinned by a 48MW hydro plant in Yunnan province, China.

Sanchuan Group is one of the top privately owned enterprises in the small hydropower sector in China. Sanchuan operates under strict environmental and social monitoring requirements, and has been supported by the Asian Development Bank, the International Finance Corporation and recently China Ping An Life with equity investments.

“Societe Generale’s financing support has successfully improved Sanchuan’s financial structure and reduced the pressure on debt repayments. Sanchuan will use these proceeds raised on new acquisitions. During the financing process, Societe Generale has proactively participated in the structuring of various financing options and assisted in crafting out the final financing solutions, according to Sanchuan’s specific requirements and the unique characteristics of the project. The Societe Generale team was very detailed-oriented and demonstrated a high level of commitment and dedication throughout the project, bridging the Sino-French relations and harnessing a stronger business partnership.  We are pleased to celebrate the successful conclusion of the financing project, a testament to the seamless collaboration and team work!” Mr. LIN Jianhua, Chairman of Sanchuan Energy Group.

For more than a decade, Societe Generale has been actively supporting and financing renewable energy projects in the Asia Pacific region, contributing to the real economy and its sustainable development.

In 2015, Societe Generale and another bank provided an unprecedented long-term senior debt facility to support the 100 MW Hornsdale Wind Farm Stage 1 project located near Jamestown in Southern Australia. In 2014, Societe Generale closed the financing of the world's largest greenfield geothermal power plant project, Sarulla, as well as the Asahan 1 hydroelectric power plant project, both in Indonesia. Societe Generale also financed the landmark 201MW Ganhekou Wind Farm No. 8 in China in 2010.