Image 1 of Privately placed fund incorporating 3 mega solar PV projects in Hokkaido
Iwamizawa City, Hokkaido

Privately placed fund incorporating 3 mega solar PV projects in Hokkaido

Capacity: Approx. 13MW

Investment Date: March 30, 2020 (Fund Management Start Date)

  • Image 2 of Privately placed fund incorporating 3 mega solar PV projects in Hokkaido
    Masuura, Kushiro City, Hokkaido
  • Image 3 of Privately placed fund incorporating 3 mega solar PV projects in Hokkaido
    Boyo, Kushiro City, Hokkaido

This is the first privately placed solar PV core fund structured by the Daiwa Securities Group, incorporating three brownfield solar PV projects we developed in Hokkaido Prefecture. Driven by the "locally produced, locally consumed" concept, the fund raised equity and debt primarily from investors and financial institutions in Hokkaido. The debt was financed through the Daiwa Green Finance Program ("Daiwa GFP"), which includes ABL and beneficiary interests and has received a green rating from a third-party institution.

Highlights of the Fund

Hokkaido Electric Power Co., Inc. made an equity investment representing local investors, and North Pacific Bank,Ltd. participated as an asset-based lender representing local financial institutions. They valued the stable cash flow characteristic of a brownfield solar PV fund, the fund's "locally produced, locally consumed" concept and the local contributions related to the incorporated assets.

Daiwa GFP has received a Green 1 rating (green rating) and an A rating (credit rating) from Japan Credit Rating Agency, Ltd. This financial product is designed to cater to a wide range of financial institutions seeking green finance solutions.

Industry Perspectives and Future Actions

We anticipate growing demand for both alternative investments, particularly through privately placed solar PV funds, and the need for financial institutions to engage in green finance. This trend is expected to attract more investors to the renewable energy sector, driving industry expansion. As a leading Japanese financial brokerage firm, the Daiwa Securities Group will continue to develop and offer innovative financial products and contribute to the growth of the Japanese renewable energy sector.

Posted on March 30, 2020