Canadian Solar Inc. has issued a JPY18.5-billion green bond in Japan, with plans to use the funds to grow its solar and energy storage unit, Recurrent Energy.
This green “samurai private placement” was arranged by Goldman Sachs Japan Co. The private placement has a three-year tenor with a mix of both semi-annual fixed (1.82% p.a.) and floating (circa 1.49% p.a.) coupons. As per reports, Canadian Solar has been a seasoned project bond issuer in Japan and had closed seven transactions for its ground mounted solar projects totaling over forty billion Japanese yen since 2016.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar commented, “This is another ground-breaking green bond transaction brought to the Japanese market by Canadian Solar and we are very pleased to receive strong support from leading Japanese financial institutions, which demonstrates their confidence in the growth prospects of Canadian Solar. We are well positioned to access competitively priced funding, supported by the strength of our business, and this bond provides us with enhanced liquidity and flexible funds to grow Canadian Solar’s Recurrent Energy’s global business through our well-established solar and battery storage development track record and financing capabilities.”
Makoto Ito, Head of Financing Group, Goldman Sachs Japan said, “We are honoured to contribute to Canadian Solar’s ongoing growth. Since helping to arrange its debut green project bond issue in 2016, we have strived to provide differentiated and innovative solutions to support Canadian Solar in achieving its business objectives. Renewable energy is a dynamic sector where creativity and the ability to think outside of the box are critical to success. We look forward to continuing to partner with Canadian Solar in its quest to create a more sustainable planet for future generations.”