Atlas sunshine power group announced that it has completed the securitization of its solar equity in Japan.
This is the first time that atlas has successfully raised 6.3 billion yen ($58 million) through the issuance of equity backed securities -- atlas solar green equity securities trust fund 1.The money came from investors in a diversified portfolio of financial conglomerates in Japan and South Korea.The full funding expires in September 2037.
The proceeds of the financing will be used to acquire two solar pv projects with a total installed capacity of 34 mw that are already in commercial operation: 23.8 mw SmartSolar yamaguchi-aio in Yamaguchi prefecture and 10.2 mw Kamikitagun Rokunohemachi in aomori prefecture, Japan.The sales revenue recognition realized by the two power station projects is reflected in the financial statements of atlas in the third and fourth quarter of 2018, respectively.
The two solar power plants had previously secured debt financing through asset securitization in the form of non-retroactive project bonds and received an "A" investment rating from JCRA on their non-recourse project bonds.The partial securitization of equity in capital structure agreed by atlas this time will further promote the development of securitization of all-commercial assets and guide solar assets into full securitization.The securities are rated Green1 by the Japan Credit Rating Agency, Ltd.
The clean Power generated by the Kamikitagun Rokunohemachi Solar photovoltaic Power station and Smart Solar yamaguchi-aio Solar station in aomori prefecture, Japan, is respectively produced by Tohoku Electric Power Company and Chugoku Electric Power Company.Buy for 36 yen ($0.33) and 40 yen ($0.37) per kilowatt-hour on a feed-in tariff (FIT) for 20 years.
Canadian Solar Asset Management, K.K.Canadian Solar O&M Japan provides operation and maintenance (O&M) services to the power station during the 20-year FIT period.The two solar power stations, which were installed using the atlas MaxPower series of highly efficient polycrystalline solar modules, were put into commercial operation at the end of 2016.
"We are pleased to be the first to complete this groundbreaking transaction and to take solar asset securitization to a new level," said Dr Qu xiaohua, chairman, President and CEO of atlas sunshine power group.I am proud of the continued growth and success of atos' investments in the Japanese environmental, social and corporate governance (ESG) sector.The Japanese asset management division has expanded rapidly since 2017 and now manages more than 60 billion yen ($540 million) in ESG funds, including the solar energy infrastructure fund, which is listed on the Tokyo stock exchange.Our institutional and retail investors are increasingly looking to diversify their portfolios to support the clean energy transition."We therefore plan to further increase our ESG investment base, provide institutional and retail investors with more investment channels and options, and ensure investment opportunities for solar assets supported by attractive long-term yields."
Goldman sachs Japan ltd. is the sole structured and exclusive placement agent for the transaction.
The securities have a "Green 1" rating, according to the international capital markets institute's Green bond principles and Japan's environment ministry's Green bond guidelines.The plant's portfolio is expected to generate 38,580 megawatts of clean, safe solar power per year, equivalent to a reduction of 25,441 tons of carbon dioxide emissions.