Canadian Solar announces $58million closing of solar equity securitization in Japan
Post date: 09/01/2019 - 16:44
Canadian Solar Inc. has completed the closing of its first equity securitization in Japan. The company raised JPY 6.3 billion ($58 million) from a diversified mix of Japanese and Korean institutional investors in its inaugural offering of equity backed securities. Proceeds from the offering were originally deployed to acquire Canadian Solar's 34 MW operating solar portfolio, comprising the 23.8 MW »Yamaguchi-Aio« solar power plant and the 10.2MW »CSJ Kamikitagun Rokunohemachi« solar plant.
Electricity generation from »CSJ Kamikitagun Rokunohemachi« and »Yamaguchi- Aio« is purchased by Tohoku Electric Power Co., Inc. and Chugoku Electric Power Company under 20 years feed-in-tariff contracts at the rates of JPY 36 ($0.33) and JPY 40 ($0.37) per kWh, respectively. The portfolio is expected to produce 38,580 MWh annually.
Canadian Solar's asset management arm, Canadian Solar Asset Management K.K., has been appointed as the Asset Manager to manage the securitized portfolio. Canadian Solar O&M Japan also provides Operations and Maintenance (O&M) services for the remaining duration of the 20 years FIT period. The two solar power plants utilize MaxPower modules supplied by Canadian Solar and began commercial operations in late 2016.