GUELPH, ON, April 7, 2021 /PRNewswire/ -- Canadian Solar
Inc. (the "Company", or "Canadian Solar")
(NASDAQ: CSIQ) announced today that it has commenced construction
on four solar projects in Japan
totaling 143 MWp. This portfolio includes Canadian Solar's flagship
mega-project, the 100 MWp Azuma Kofuji project located in the
Fukushima Prefecture, and other projects totaling 43 MWp in the
Ibaraki and Hiroshima
Prefectures.
Azuma Kofuji 100 MWp
The Azuma Kofuji project is Canadian Solar's largest project in
Japan to date and is also expected
to be among the largest in the country. The project will be powered
with Canadian Solar high efficiency HiKu modules and is
expected to reach commercial operation in Q1 2023. The energy
generated will be purchased by the Tohoku Electric Power Company at
the rate of ¥36 ($0.34) per kWh.
The project is financed by Nomura Capital Investment Co., Ltd.
("NCI") with construction debt of JPY
24.5 billion (approximately US$230
million), and will draw on Juwi Shizen Energy's experience
as a global EPC (Engineering, Procurement and Construction)
company. Built on 460 acres, Azuma Kofuji is expected to produce
enough clean energy to power approximately 31,000 households. The
project is expected to participate in the Climate Bonds green
certification process which is compatible with the new European
Union Green Bond Standard (EU GBS).
"We are delighted to contribute our part to revitalize the
Fukushima Prefecture. Up until recently, the Azuma Kofuji project
site was an abandoned, non-productive farmland. Now, we are
directly investing and creating local job opportunities during the
construction of the project, reinvigorating the local economy in a
region devastated by the 2011 Tohoku earthquake. We have worked
closely with local communities to ensure that clean, renewable
energy from our solar plant creates lasting societal benefits. We
are proud to take part in rebuilding economic and energy resilience
in the Fukushima hometowns while supporting Japan's 2050 carbon neutrality ambitions,"
commented Dr. Shawn Qu, Chairman and
CEO of Canadian Solar.
He added, "These projects continue to expand Canadian Solar's
strong track record in Japan. We
now have over 450 MWp of utility-scale projects that are
operational or under construction, and two partnership platforms in
Canadian Solar Infrastructure Fund (TSE: 9284) and Japan Green
Infrastructure Fund. We are also one of the strongest solar module
brands in Japan driven by our
differentiated technology and large manufacturing scale. Put
together, we have further solidified Canadian Solar as the most
integrated solar player in the Japanese market. We thank our
financing partners who continue to support Canadian Solar with
low-cost capital, which allow us to develop and expand our
high-quality project portfolio in Japan."
"Nomura has extensive experience financing renewables in
Japan and is excited to support
Canadian Solar on this significant transaction," said Vinod Mukani,
Head of Nomura's Infrastructure and Power Finance group. "Canadian
Solar is attractively positioned as a tier-1 solar module
manufacturer and as a leading global solar developer. Nomura is
pleased to provide this financing and partner with strong sponsors
contributing toward the transition to a low carbon economy."
Ibaraki and Hiroshima projects 43 MWp
These projects received JPY 8.1
billion (US$75 million)
through the issuance of Green Project Bonds to Japanese bond
investors. As a seasoned project bond issuer, Canadian Solar has
partnered with Goldman Sachs Japan Co., Ltd ("GS") as the
sole arranger for the sixth time. Once again, the domestic bond
investors provided Canadian Solar with innovative debt capital that
is commercially different to that of the traditional bank facility
market. These project bonds combine the unique aspects of having
dual-tenor maturity of 2 years and 18 years within each tranche of
bond, and blend total funding requirements throughout the
construction and operational phase of multiple projects. The Japan
Credit Rating Agency, Ltd. ("JCR") has assigned these
Multi-Asset Dual-Tenor Green Project Bonds with an investment grade
rating of "BBB+" and certified the issuer with highest Green 1
rating under the Japanese Green Bond guidelines. Hitachi Capital
Trust Corp. is appointed as the trustee.
"This will be yet another ground-breaking Green Project Bond
transaction brought to the Japanese market by Canadian Solar," said
Toru Inoue, Goldman Sachs' Head of
Infrastructure & Structured Finance for Japan. "We are extremely honored to support
Canadian Solar's deep-rooted growth in Japan. Ever since we took part in Canadian
Solar's first green project bonds in 2016, we demonstrated our
capability to provide differentiated and innovative transactions to
achieve the sponsor's business objectives. The renewables industry
is a dynamic sector where creativity and the ability to think
outside of the box are extremely important. We look forward to
continuing to partner with Canadian Solar in its quest to make
solar a sustainable mainstream energy."
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar
technology and renewable energy companies. It is a leading
manufacturer of solar photovoltaic modules, provider of solar
energy and battery storage solutions, and developer of
utility-scale solar power and battery storage projects with a
geographically diversified pipeline in various stages of
development. Over the past 19 years, Canadian Solar has
successfully delivered over 52 GW of premium-quality, solar
photovoltaic modules to customers in over 150 countries. Likewise,
since entering the project development business in 2010, Canadian
Solar has developed, built and connected over 5.7 GWp in over 20
countries across the world. Currently, the Company has over 500 MWp
of projects in operation, over 5 GWp of projects under construction
or in backlog (late-stage), and an additional 11 GWp of projects in
pipeline (mid- to early- stage). Canadian Solar is one of the most
bankable companies in the solar and renewable energy industry,
having been publicly listed on the NASDAQ since 2006. For
additional information about the Company, follow Canadian Solar
on LinkedIn or visit www.canadiansolar.com.
About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global financial
institution that delivers a broad range of financial services
across investment banking, securities, investment management and
consumer banking to a large and diversified client base that
includes corporations, financial institutions, governments and
individuals. Founded in 1869, the firm is headquartered in
New York and maintains offices in
all major financial centers around the world. Goldman Sachs
developed the first Green Project Bonds for the Japanese market in
2013. It has since arranged nineteen project bond transactions and
one project equity securitization. Of the twenty transactions six
is for Canadian Solar.
About Nomura
Nomura is a global financial services group with an integrated
network spanning over 30 countries. By connecting markets East
& West, Nomura services the needs of individuals, institutions,
corporates and governments through its three business divisions:
Retail, Wholesale (Global Markets and Investment Banking), and
Investment Management. Founded in 1925, the firm is built on a
tradition of disciplined entrepreneurship, serving clients with
creative solutions and considered thought leadership. Nomura's
Infrastructure and Power Finance business provides a diverse pool
of financing solutions to project owners globally. For further
information about Nomura, visit www.nomura.com.
Safe Harbor/Forward-Looking Statements
Certain statements in this press release are forward-looking
statements that involve a number of risks and uncertainties that
could cause actual results to differ materially. These statements
are made under the "Safe Harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by such terms as "believes,"
"expects," "anticipates," "intends," "estimates," the negative of
these terms, or other comparable terminology. Factors that could
cause actual results to differ include general business and
economic conditions and the state of the solar industry;
governmental support for the deployment of solar power; future
available supplies of high-purity silicon; demand for end-use
products by consumers and inventory levels of such products in the
supply chain; changes in demand from significant customers; changes
in demand from major markets such as Japan, the U.S., India and China; changes in customer order patterns;
changes in product mix; capacity utilization; level of competition;
pricing pressure and declines in average selling prices; delays in
new product introduction; delays in utility-scale project approval
process; delays in utility-scale project construction; delays in
the completion of project sales; delays in the process of
qualifying to list the MSS subsidiary in the PRC; continued success
in technological innovations and delivery of products with the
features customers demand; shortage in supply of materials or
capacity requirements; availability of financing; exchange rate
fluctuations; litigation and other risks as described in the
Company's SEC filings, including its annual report on Form 20-F
filed on April 28, 2020. Although the
Company believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee
future results, level of activity, performance, or achievements.
Investors should not place undue reliance on these forward-looking
statements. All information provided in this press release is as of
today's date, unless otherwise stated, and Canadian Solar
undertakes no duty to update such information, except as required
under applicable law.
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SOURCE Canadian Solar Inc.