Sky Solar gets USD 33m for projects in Asia, Americas

Hong Kong-based firm Sky Solar Holdings Ltd (NASDAQ:SKYS) has secured JPY 4 billion (USD 33m/EUR 30m) for its 107.9 MW of photovoltaic (PV) projects in Japan and other schemes in Asia and the Americas.

In a press release on Wednesday, the independent power producer (IPP) said that its unit Sky Solar Japan KK had inked definitive deals with an existing anonymous partner, which has agreed to increase its capital contribution to Sky Solar’s projects. So far, the investor has poured over JPY 4.93 billion in them under partnership agreements from September 2014.

Sky Solar plans to use half of the proceeds to back its 67 solar parks in Japan. The PV plant developer, owner and operator will allocate the remaining JPY 2 billion to extend a 12-month loan of the same principal amount to Sky International Enterprise Group Ltd (SIE), which will then use it for the development of certain PV projects in Asia and the Americas. The credit facility will bear an 5% annual interest rate.

“We believe this valuable partnership and the terms of our agreement will allow us to maximize shareholder value by reducing our cost of capital as we work to securitize these assets in Japan and further our industry leadership position in this market,” founder, chairman and CEO, Weili Su, noted.

Sky Solar Japan and its partner will continue to negotiate further financing for the project pipeline, the parent noted.

(JPY 100 = USD 0.830/EUR 0.740)

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