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Canadian Solar closes USD-58m equity securitisation in Japan

Solar farm in Japan. Author: Haruhiko Okumura. License: Creative Commons, Attribution 2.0 Generic.

January 9 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) has raised JPY 6.3 billion (USD 57.8m/EUR 50.5m) by closing its first equity securitisation in Japan, backed by long-term contracted solar assets.

The company raised the sum from various Japanese and Korean institutional investors. It said today that proceeds from the offering were originally used to acquire its 34-MWp operating solar portfolio, including the 23.8-MWp Smart Solar Yamaguchi-Aio solar park and the 10.2-MWp CSJ Kamikitagun Rokunohemachi facility.

Canadian Solar noted that the two assets have existing debts raised through a non-recourse project bond structure, developed using financial securitisation techniques.

Tohoku Electric Power Co Inc is purchasing the output of the CSJ Kamikitagun Rokunohemachi plant at JPY 36 per kWh, while Chugoku Electric Power Company buys the electricity generated by Smart Solar Yamaguchi Aio Solar Power Plant at JPY 40/kWh under 20-year contracts. The two solar parks have been operating since late 2016.

Shawn Qu, chairman and CEO of Canadian Solar, said that the company’s Japanese asset management arm has grown to manage over JPY 60 billion of Environmental, Social and Governance (ESG) investment platforms since 2017. "We plan to grow our ESG investor base to provide further avenue for institutional and retail investors who are increasingly looking to diversify their portfolios into supporting clean energy transition and secure an investment opportunity in solar assets backed by attractive long-term yields," he added.

(JPY 100 = USD 0.918/EUR 0.801)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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