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Etrion issues green bond to finance 45-MW Japanese solar project

Aomori solar park in Japan. Source: Etrion (www.etrion.com).

July 2 (Renewables Now) - Solar power producer Etrion Corp (TSE:ETX) has issued a JPY-16-billion (USD 147.7m/EUR 130.8m) green bond to finance the construction of a solar plant in Japan.

The bond was arranged by a Japanese unit of Goldman Sachs Group Inc (NYSE:GS). It will be used to finance the 45-MW Niigata ground-mounted fixed-tilt solar project in Niigata prefecture that requires a total investment of JPY 16.7 billion.

Toyo Engineering has been appointed engineering, procurement and construction (EPC) contractor for the project, which should become operational in the final quarter of 2021. Work was initiated on Monday.

Upon completion, the plant will sell its power at a feed-in tariff (FiT) of JPY 36 per kWh, valid until March 2040. The power purchase agreement (PPA) was entered into with Tohoku Electric Power Co Inc (TYO:9506).

The solar plant is seen to generate average annual revenues of USD 15.5 million (EUR 13.7m), earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 13.7 million and free cash flow at project level of USD 3.6 million.

(JPY 100 = USD 0.923/EUR 0.817)

(USD 1.0 = EUR 0.885)

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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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