EIB confirms EUR 200 million long-term loan to State Bank of India to support Indian large-scale solar projects

The European Investment Bank on March 31^st, 2017 confirmed new support for solar power generation in India in partnership with the State Bank of India.

The EUR 200 million (INR1,400 Crores) long-term loan will support total investment of EUR 650 million in five different large-scale photo-voltaic solar power projects and contribute to India’s National Solar mission and reduce dependence on fossil fuel power generation.

Four schemes across the country, with a generation capacity of 530 MWac, have already been identified.

The loan agreement was formally announced in New Delhi ahead of the inauguration of the first permanent presence in India of the European Investment Bank by Finance Minister Jaitley, European Investment Bank President Werner Hoyer and Vice President Andrew McDowell, responsible operations in India and South Asia.

The EUR 200 million 20 year long-term European Investment Bank loan will support individual projects following technical and financial due diligence.

It is expected that projects in Telangana and Tamil Nadu states, and elsewhere in the country, will be backed by the new initiative. The European Investment Bank will support investment in individual solar projects alongside financing from Indian banks and project promoters. 

source: http://www.solarserver.com

Canadian Solar raises USD 47.0 million with green PV project bond in Japan

Canadian Solar Inc. (Guelph, Ontario) on April 3^rd, 2017 announced completion of its second green project bond placement with Goldman Sachs Japan Co., Ltd.

The JPY5.4 billion (USD 47.0 million) innovative dual-tenor green project bond was issued to finance Canadian Solar's 19.05 MW Gunma Aramaki solar PV plant in Gunma Prefecture, Japan.

The Gunma Aramaki Solar Power Plant is expected to reach commercial operations in December 2017. The electricity generated from this solar power plant will be purchased by the Tokyo Electric Power Co., Inc. (TEPCO) under a 20-year feed-in-tariff contract at the rate of JPY36.00 (USD 0.32) per kWh.

The Gunma Aramaki green project bond is the first of its kind with dual-tenor maturity of 1.5 years and 20.3 years, representing the initial and extended tenor respectively, within a single-tranche of bond.

This innovative tenor mechanism provides Canadian Solar with options to maximize the value of its investment while preserving long-term financing support for its solar power project.

The Japan Credit Rating Agency, Ltd. (JCR) has assigned the investment grade rating of "A" to the Gunma Aramaki project, which is in line with the highest rating in the Japan PV sector.

Further, Japan Research Institution, Limited (JRI) provided an independent certification for the designation as green bond in accordance with the Green Bond Principles 2016 published by the International Capital Market Association (ICMA).

The asset-backed non-recourse bond has been issued at par and pays a fixed coupon of 1.2875% per annum during the initial tenor and, if extended at the option of Canadian Solar, 1.3588% per annum thereafter. 

source: http://www.solarserver.com