Privately placed fund incorporating 3 mega solar power projects in Hokkaido
Capacity: Approx. 13MW
Investment Date: March 30, 2020 (Fund Management Start Date)
This is the first privately placed solar power fund structured by Daiwa Securities Group, incorporating 3 brownfield solar power projects located in Hokkaido, developed by us. As an example of a “locally produced, locally consumed” fund, we secured equity and debt financing mainly from investors and financial institutions in Hokkaido. The debt financing has been done through Daiwa Green Finance Program (Daiwa GFP), beneficiary rights/ABL with green evaluation from a third-party organization.
Highlights of the Fund
Stable cash flow as a brownfield solar power fund, the concept behind and contribution to the regional community brought by the incorporated assets are highly evaluated by investors. Hokkaido Electric Power made equity investment representing local investors, and North Pacific Bank was involved as an ABL lender representing local financial institutions. The product is designed for a wide range of financial institutions looking into funding through green finance. We adopted Daiwa GFP that has obtained Green 1 (green rating) and A rating (credit rating) from JCR so that investors can easily evaluate the product with certain rating guidance.
Industry Perspectives and Future Actions
We believe that there will be growing demands in alternative investment through privately placed solar funds, as well as in financial institutions to provide funding through green finance. Such demands will attract more investors into renewable energy fields, ultimately leading to the expansion of the industry. Daiwa Securities Group, as a leading Japanese financial brokerage firm, will continue to create and provide similar, innovative financial products for investors and to contribute to the growth of the Japanese renewable energy industry.
Posted on March 30, 2020