Canadian Solar Issues JPY3.0 Billion Solar Project Bond in Japan

GUELPH, Ontario — Canadian Solar has entered into a financing agreement, pursuant to which, Goldman Sachs Japan Co., Ltd. has agreed to arrange a JPY3.0 billion ($26.0 million) project finance bond for Canadian Solar’s 10.2 MWp Aomori-Misawa Solar Power Plant in Rokunohe-cho, Kamikita-gun, Aomori Prefecture, Japan. The non-recourse bond, which is backed by the project assets, has a maturity of 20 years, including a 2-year grace period, and a fixed coupon rate of 1.4%. Goldman Sachs Japan Co., Ltd. acted as the bond arranger and Shinsei Trust and Banking Co., Ltd. as the lender. The 10.2 MWp Aomori-Misawa Solar Power […]

By Derick Lila February 25, 20160

GUELPH, Ontario — Canadian Solar has entered into a financing agreement, pursuant to which, Goldman Sachs Japan Co., Ltd. has agreed to arrange a JPY3.0 billion ($26.0 million) project finance bond for Canadian Solar’s 10.2 MWp Aomori-Misawa Solar Power Plant in Rokunohe-cho, Kamikita-gun, Aomori Prefecture, Japan.

The non-recourse bond, which is backed by the project assets, has a maturity of 20 years, including a 2-year grace period, and a fixed coupon rate of 1.4%. Goldman Sachs Japan Co., Ltd. acted as the bond arranger and Shinsei Trust and Banking Co., Ltd. as the lender.

The 10.2 MWp Aomori-Misawa Solar Power Plant received an investment grade rating of “A” from Japan Credit Rating Agency, Ltd. The project is expected to reach commercial operation in December, 2016. The electricity generated from this solar plant will be purchased by Tohoku Electric Power Co., Inc. under a 20-year feed-in-tariff contract at the rate of ¥36.00 yen ($0.32) per kWh.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar Inc. commented, “We are very proud to announce this important financing arrangement in Japan. In addition to giving us access to a very low-cost source of financing for our projects, this transaction is the first asset-backed security arranged by a foreign sponsor in the Japanese PV sector. In addition, the A investment grade rating is so far the highest for all PV-related project bonds issued in Japan, a testament to the high quality and bankability of Canadian Solar’s project pipeline in Japan.”

About Canadian Solar

Founded in 2001 in Canada, Canadian Solar is one of the world’s largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and a provider of solar energy solutions, Canadian Solar has a geographically diversified pipeline of utility-scale power projects. In the past 14 years, Canadian Solar has successfully deployed over 13 GW of premium quality modules in over 90 countries around the world. Furthermore, Canadian Solar is one of the most bankable companies in the solar industry, having been publically listed on NASDAQ since 2006.