Canadian Solar Closes Japan Green Infrastructure Fund at $208 Mn

Canadian Solar has announced the successful close of the Japan Green Infrastructure Fund securing USD 208 million of committed capital

Canadian Solar has announced the successful close of the Japan Green Infrastructure Fund (JGIF). Canadian Solar will partner with Macquarie Advisory & Capital Solutions (Macquarie), the advisory and capital markets arm of the Macquarie Group. Macquarie is both the financial advisor and a minority investor in the Fund.

JGIF’s mission is to accelerate the development of new projects in Japan with clear monetisation strategies, and expects to grant first offer rights to the Canadian Solar Infrastructure Fund (CSIF), a Japanese-listed infrastructure fund holding operating solar assets managed by Canadian Solar’s asset management subsidiary.

The Fund marks Canadian Solar’s first platform entry into the private institutional capital pool. Together with Macquarie and other cornerstone investors, the Fund has secured JPY22 billion (USD 208 million) of committed capital that will be used to develop, build and accumulate new solar projects in Japan. The Fund will further consider green bond placements and project finance loans as it expands its asset portfolio.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar said “we are pleased to partner with Macquarie and other long-term investors to launch this new development fund. JGIF’s more dedicated capital pool will further boost our competitiveness in developing clean, sustainable and high-quality solar energy projects in Japan, leveraging our strong track record both as one of the largest solar developers in the country and as the sponsor of the Canadian Solar Infrastructure Fund. 

“Meanwhile, we expect to deliver attractive and stable returns to our long-term capital partners, including insurance companies and asset managers, who are searching for yield and looking to deploy capital to advance the clean energy transition.”

JGIF is managed as an approved 13X fund management company regulated under the Monetary Authority of Singapore (MAS). Canadian Solar and Macquarie will jointly serve as general partners of the Fund, with an economic stake of 67 percent and 33 percent, respectively. The Fund aims to catalyse large-scale investments within its six-year fund term and will sell to managed funds or on the secondary market to maximise value.