Mezzanine financing with Shinsei Bank Group for domestic renewable energy businesses
Investment Date: October 28, 2020 (Press Release Date)
We started providing mezzanine financing for renewable energy project finance in collaboration with Shinsei Bank and Shinsei Trust & Banking. Merging Shinsei Bank’s expertise in project finance and our know-how in renewable energy investment, we aim to offer choices other than senior loans and equities to finance renewable energy businesses and to promote environmentally friendly power generation.
Highlights of the Fund
Mezzanine financing will meet the following needs.
1. To make equity financing easier for projects with larger costs
2. To improve the equity capital efficiency with the use of leverage
Adopting co-investment models, such as the use of trusts, we will accumulate 40 billion JPY of mezzanine financing with Shinsei Bank Group. Once we have reached a certain investment/loan balance, we will start a fund incorporating these invested assets to offer new investment opportunities mainly for institutional investors taking part in the ESG investing and the SDGs
Industry Perspectives and Future Actions
Although mega solar and onshore wind power projects are our current targets at the moment, we intend to carry out investments and provide financing for offshore wind power projects where rapid market growth is expected in the near future.
Posted on October 30, 2020