Canadian Solar issues JPY-7.4bn green bond for solar park in Japan

Solar park in Japan. Author: Minoru Karamatsu. License: Creative Commons.

November 16 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) announced on Thursday it has raised JPY 7.4 billion (USD 65.4m/EUR 55.6m) with a dual-tenor green project bond in Japan.

The company said in a press statement that this is its second green project bond placement. Goldman Sachs Japan Co Ltd was the bond arranger and Hitachi Capital Trust Corp was appointed as trustee.

The bond was issued to finance the 27.3-MW Tottori Solar Power Plant in Tottori Prefecture, Japan. The particular facility started commercial operations in August 2017, and is currently selling its output to Chugoku Electric Power Co Inc under a 20-year feed-in tariff (FiT) contract at the rate of JPY 40.00 per kWh.

The Japan Research Institution Ltd (JRI) independently certified the instrument as a “green bond” with a dual-tenor maturity of 1.5 years and 18.3 years. It was issued at par and pays a fixed coupon of 1.2725% per annum during the initial tenor. If extended, the coupon will be changed to 1.3113% per annum.

(JPY 1.0 = USD 0.884/EUR 0.751)

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