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

August 5, 2015

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.