Mezzanine financing with the Shinsei Bank Group for domestic renewable energy businesses
Investment Date: October 28, 2020 (Press Release Date)
We have begun providing mezzanine financing for renewable energy projects in collaboration with Shinsei Bank, Limited and Shinsei Trust & Banking Co., Ltd. By combining the expertise of the Shinsei Bank Group in project finance with our knowledge of renewable energy investment, we aim to offer alternatives to senior loans and equity financing for renewable energy businesses, promoting environmentally friendly power generation.
Highlights of the Fund
Mezzanine financing will address the following needs:
1. Facilitate equity financing for projects with higher costs.
2. Enhance equity capital efficiency through leverage.
Through co-investment models, such as the use of trusts, we plan to accumulate 40 billion JPY in mezzanine financing with Shinsei Bank Group. Once we achieve a certain investment/loan balance, we will create a fund incorporating these assets to offer new investment opportunities, primarily targeting institutional investors engaged in ESG investing and the SDGs.
Industry Perspectives and Future Actions
Currently, our investment and financing projects primarily focus on mega solar PV and onshore wind projects. Looking ahead, we also aim to include offshore wind projects, which are anticipated to experience rapid market expansion in the near future.
Posted on October 30, 2020