Etrion issues ¥16.7 billion bond and commences construction of 45 MW »Niigata« solar project in Japan
Post date: 04/07/2019 - 15:39
Swiss-Canadian independent power company Etrion Corp. announced the signing, execution and drawdown with respect to a finance agreement for the construction of the 45 MW »Niigata« solar project located in the Niigata prefecture in northern Japan. The arranger of the Etrion Green Project Bond, rated BBB, was Goldman Sachs Japan Co., LTD.
»Niigata« is a ground-mounted fixed-tilt solar photovoltaic power project. Construction works began in early July, and the solar project is expected to be fully operational by the fourth quarter of 2021. The solar power plant will be built on 75.7 hectares of owned land and will connect through the Tohoku Electric Power Co., Inc. utility. The project company entered into an effective eighteen-year power purchase agreement (PPA) with Tohoku and will receive ¥36 ($0.33) per kWh of electricity produced. Once operational, »Niigata« is expected to produce approximately 47 GWh per year.
»With the addition of Niigata, we will be nearly doubling our capacity in Japan to over 100 MW,« commented Marco A. Northland, Etrion’s Chief Executive Officer. »The financing was executed flawlessly, securing a green bond at a financing cost less than a half the cost of prior projects.«
Etrion owns 100 percent of the facility. The total project cost is expected to be approximately ¥16.7 billion ($146 million), which has been financed 95 percent through a non-recourse loan with a tenor of construction period plus 16.8 years. The remaining 5 percent of total project cost has been fully funded by Etrion. The lender to the Niigata project is a Green Project Bond Trust, which issued asset-backed securities and loans, fully underwritten by the arranger Goldman Sachs and sold to other investors.
Etrion Corporation develops, builds, owns and operates utility-scale solar power generation plants. The company owns and operates 57 MW of solar capacity and owns the 45 MW »Niigata« project under construction, all in Japan. Etrion also has several projects in the backlog and pipeline at different stages of development in Japan. Largest shareholder is the Lundin family, which owns approximately 36 percent of the company’s shares directly and through various trusts.