Canadian Solar has Completed its Second Green Project Bond Placement in Japan

Canadian Solar

November 22, 2017

Canadian Solar Inc.has announced the completion of its second green project bond placement with Goldman Sachs Japan Co., Ltd. The JPY7.4 billion ($66.0 million) dual-tenor green project bond was issued to finance Canadian Solar’s 27.3 MWp Tottori Solar Power Plant in Tottori Prefecture, Japan. The Tottori solar power plant achieved commercial operations in August 2017, and the electricity generated is currently being purchased by the Chugoku Electric Power Company, Inc. under a 20-year feed-in-tariff contract at the rate of JPY40.0 ($0.36) per kWh.

The Tottori green project bond consists of a dual-tenor maturity of 1.5 years and 18.3 years, representing the initial and extended tenor respectively, within a single-tranche of the bond. This dual-tenor structure makes full repayment of the bond flexible, while enabling a potential sale of the solar power plant to Canadian Solar Infrastructure Fund, recently listed on the Tokyo Stock Exchange.

The Japan Credit Rating Agency, Ltd. (“JCR”) assigned the Tottori project an investment grade rating of “A”, making it the fourth project by Canadian Solar in Japan to receive such a rating and in line with the highest ratings reported in the Japan PV sector. Furthermore, the Japan Research Institution, Limited (“JRI”) independently certified the designation as a green bond, in accordance with the Green Bond Principles (2016) published by the International Capital Market Association (“ICMA”). The asset-backed, non-recourse bond was issued at par and pays a fixed coupon of 1.2725% per annum during the initial tenor and, if extended at the option of Canadian Solar, 1.3113% per annum thereafter. Goldman Sachs Japan Co., Ltd. acted as the bond arranger and Hitachi Capital Trust Corp., was appointed as trustee. 

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar Inc. commented, “We are very proud to announce the issuance of a second dual-tenor green project bond at a low coupon rate. This solidifies our position as the leading international issuer of green project bonds in Japan. Investors recognize our strong record of building high quality and bankable solar power projects. This project will contribute to the growth of Canadian Solar Infrastructure Fund as a leading renewable energy fund in Japan. We will continue to look for opportunities to promote renewable energy platform in this market.” 

http://investors.canadiansolar.com/phoenix.zhtml?c=196781&p=irol-newsArticle&ID=2317388

Related Articles


Latest Articles

  • Take the Lesson

    Take the Lesson

    September 2, 2024 By Keith Sones, seasoned utility industry executive “I really don’t want to do this.” “You have to Keith. You have no choice. You can’t leave him hanging” replied my wife. I stared at the phone like a child looks at liver on their plate. They know you have to eat it but also… Read More…

  • Quebec Drives the Growth in Residential Building Construction in June, 2024

    Quebec Drives the Growth in Residential Building Construction in June, 2024

    Investment in building construction grew 2.8% to $21.4 billion in June, after a slight increase of 0.8% in May. These increases partly reflect April’s record high of $13.4 billion in total building permits value, since investment levels for a given period are driven by permits issued in prior months. The June increase in investment in building construction was primarily… Read More…

  • Western Memorial Regional Hospital Sets New Infrastructure Precedent and Receives LEED Silver Certification 

    Western Memorial Regional Hospital Sets New Infrastructure Precedent and Receives LEED Silver Certification 

    August 16, 2024 The new Western Memorial Regional Hospital in Corner Brook is home to Canada’s largest geothermal system, which has set a precedent for modern infrastructure for both Newfoundland and Labrador and North America. The geothermal field is approximately 600 feet below the hospital’s parking lot, and provides 100 per cent of the ground… Read More…

  • Brightening Communities: LED Technology in Action

    Brightening Communities: LED Technology in Action

    August 15, 2024 By Alex Price, Brand & Planning Manager, Current LightingTechnical Contributor: Gary Steinberg, Senior System Manager (Outdoor LED Fixtures), Current Lighting As the landscape of Canadian cities continues to evolve, the importance of outdoor lighting cannot be overstated. From enhancing public safety to promoting economic activity and fostering a sense of community, well-planned… Read More…


Changing Scene

  • Schneider Electric Launches SMART Buildings Division to Drive Sustainable Building Innovation in Canada

    Schneider Electric Launches SMART Buildings Division to Drive Sustainable Building Innovation in Canada

    Schneider Electric is transforming its Digital Buildings business in Canada with the launch of the SMART Buildings Division. This evolution marks a strategic move to deliver comprehensive solutions and services that support building owners and operators in achieving their decarbonization and sustainability goals. The demand for smart buildings is surging, driven by a global shift… Read More…

  • Introducing Alan Bearden as Interim President of Southwire Canada

    Introducing Alan Bearden as Interim President of Southwire Canada

    September 4, 2024 Southwire Canada is pleased to announce that Alan Bearden has been appointed Interim President. In this role, Alan will provide leadership and guidance for Southwire’s Canada-based organization, ensuring continuity and driving growth during this transitional period. Alan Bearden brings a wealth of experience to the position, having joined Southwire in 2008. Over… Read More…

  • A Partnership Between Electromag Graybar Canada and Phoenix Contact

    A Partnership Between Electromag Graybar Canada and Phoenix Contact

    September 3, 2024 Electromag Graybar Canada, a pioneer in industrial automation solutions and pneumatic products, is excited to announce a partnership with Phoenix Contact, a global leader in electrification, networking, and industrial automation. This collaboration, which initially began in the Langley and Ontario branches, is now expanding to Quebec. The alliance aims to provide cutting-edge… Read More…

  • Sonepar Announces the Retirement of William (Bill) C. Smith, Electrozad Director of Transitional Business

    Sonepar Announces the Retirement of William (Bill) C. Smith, Electrozad Director of Transitional Business

    September 2, 2024 William (Bill) C. Smith, Director, Transitional Business of Electrozad Supply Company Limited announced his retirement as of August 30th, 2024 after 49 years of leadership. Bill began his electrical career working part-time at Electrozad Supply while completing a Sales & Marketing Program at St. Clair College.  After his first full-time position in… Read More…