Canadian Solar Japan KK announced Nov 27, 2017, that it has raised ¥7.4 billion (approx US$66 million) to construct a solar power plant with an output of about 27.3MW.
Canadian Solar Japan, a Japanese subsidiary of a major solar panel manufacturer, started to sell electricity generated at the mega (large-scale) solar power plant, "CS Tottori Daisen Solar Power Plant," in Tottori Prefecture, Japan. The plant is located in Daisen-cho, Saihaku-gun, Tottori Prefecture, and started commercial operation in August 2017. The electricity generated is sold to The Chugoku Electric Power Co Inc at a price of ¥40/kWh (excluding tax). The plant is expected to generate 26,259MWh of electricity per year.
Toshiba Corp provided EPC (engineering, procurement and construction) services for the plant. Canadian Solar Japan installed 85,320 solar panels manufactured by Canadian Solar Japan and PV inverters manufactured by Toshiba Mitsubishi-Electric Industrial Systems Corp (TMEIC).
This time, the capital was raised through "dual-tenor green project bond" and "asset based lending (ABL)." They were entrusted to Goldman Sachs Japan Co Ltd (Minato-ku, Tokyo). It is Canadian Solar Japan's second project using a dual-tenor green project bond.
The dual-tenor green project bond and ABL of the project in Tottori have two maturity dates: 1.5 and 18.3 years. It the lending period is extended after 1.5 years, it becomes possible to lend the money for 18.3 years.
This mechanism makes full repayment of the bond flexible while maintaining the possibility of selling it to Canadian Solar Infrastructure Fund Inc, which was listed on the Tokyo Stock Exchange at the end of October 2017.
At the time of realizing the dual-tenor green project bond and ABL, the mega solar plant received the "A" rating (the highest rating) from Japan Credit Rating Agency Ltd (JCR).
Also, Canadian Solar Japan used a non-recourse bond on security of the plant. It was issued with a fixed interest of 1.2725% per year. If the period is extended, the interest will be changed to 1.3113% per year. The arranger and trustee of the non-recourse bond are Goldman Sachs Japan and Hitachi Capital Trust Corp, respectively.