Canadian Solar in Japan to finance 19-MWp project with green bond

Canadian Solar Inc (NASDAQ:CSIQ) today said it has placed a green project bond of JPY 5.4 billion (USD 48.4m/EUR 45.3m) to finance a 19.05-MWp project in Gunma, Japan.

Goldman Sachs Japan Co Ltd served as the bond arranger. A little more than a year ago, Canadian Solar issued a JPY-3-billion bond again with Goldman Sachs’ (NYSE:GS) help for another solar scheme in Japan.

The latest bond, certified as “green” by the Japan Research Institution Ltd, has dual-tenor maturity of 1.5 years and 20.3 years, representing the initial and extended tenor, respectively. It will have a fixed coupon of 1.2875% per year during the initial tenor and, if extended at the option of Canadian Solar, 1.3588% per year thereafter.

The solar company’s Gunma Aramaki Solar Power Plant is to reach commercial operations at the end of this year. It will sell its power at JPY 36/kWh to Tokyo Electric Power Co Inc (TEPCO) under a 20-year power purchase contract. The Japan Credit Rating Agency Ltd has given the solar photovoltaic (PV) project an investment grade rating of "A", the highest rating in the Japan PV sector.

(JPY 100 = USD 0.90/EUR 0.84)

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