By Wendy Van Sickle
Columbus, Ohio, Nov. 16 – Canadian Solar, Inc. completed its second green project bond placement, a ¥7.4 billion bond placement with Goldman Sachs Japan Co., Ltd. as arranger, according to a Thursday press release.
The asset-backed, non-recourse bond was issued at par, with proceeds slated to finance Canadian Solar's 27.3 MWp Tottori Solar Power Plant in Tottori Prefecture, Japan.
The bond has a dual-tenor maturity, with an initial tenor of 1.5 years and a potential extended tenor of 18.3 years at the company’s option, according to the release.
The coupon is fixed at 1.2725% during the initial tenor and will rise to 1.3113% thereafter if the bond maturity is extended.
The dual-tenor structure makes full repayment of the bond flexible, while allowing for a potential sale of the plant to Canadian Solar Infrastructure Fund, the company said.
“This solidifies our position as the leading international issuer of green project bonds in Japan,” Shawn Qu, chairman and chief executive officer of Canadian Solar, Inc., said in the release.
“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.”
Canadian Solar is a solar power company based in Guelph, Ont. The Tottori solar power plant achieved commercial operations in August, and the electricity generated is being purchased by the Chugoku Electric Power Co., Inc. under a 20-year feed-in-tariff contract at ¥40.0 per kWh.
| Issuer: | Canadian Solar Inc.
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| Issue: | Green project bond
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| Amount: | ¥7.4 billion
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| Price: | Par
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| Maturity: | 1.5 years initially and 18.3 years for the extended tenor
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| Coupon: | 1.2725% for initial tenor and, if extended, 1.3113%
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| Arranger: | Goldman Sachs Japan Co., Ltd.
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| Announcement date: | Nov. 16
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| Rating: | Japan Credit Rating Agency, Ltd.: A
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