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Sparx Launches 20 Bln Yen Fund for Solar Plants

2017/12/08 19:59
Kenji Kaneko, Nikkei BP Intelligence Group, CleanTech Institute
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Sparx Asset Trust & Management Co Ltd (Minato-ku, Tokyo), a subsidiary of Sparx Group Co Ltd, structured "Renewable Energy Brown Field Fund" for investing in mega (large-scale) solar power plants in operation, etc and started the management of the fund Nov 29, 2017.

The first closing of the fund took place with a scale of ¥20 billion (approx US$176 million) Nov 7, 2017, with investment from Taiyo Life Insurance Co, The Tochigi Bank Ltd, Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Finance and Leasing Co Ltd, Ricoh Leasing Co Ltd and other institutional investors. Sparx Asset Trust & Management is still accepting investment, aiming to expand the scale of the fund to ¥50 billion.

As of the end of September 2017, with its "Green Field Fund," which starts to invest at the stage of development, Sparx Group has a total business scale of ¥147.8 billion, 24 power plants and a total output of about 344MW, mainly dealing with mega (large-scale) solar power plants.

The Renewable Energy Brown Field Fund, which Sparx Group started to structure and manage this time, invests in solar power generation facilities in operation. While it can secure a stable cash flow for a long period of time because of the feed-in tariff (FIT) policy, it has no development risk because it invests only in power generation facilities in operation, and it can provide dividends from the beginning.