Canadian Solar with Macquarie and other investors has raised $208 million, which is equivalent to about 22 billion Japanese Yen for its Japan Green Infrastructure Fund (JGIF). The fund has been set up with the aim to develop solar power capacity in Japan. While Canadian solar will have a stake of 67 per cent in the fun, Macquarie Group, an infrastructure investor, will have the remaining share of 33 per cent. Macquarie will also act as a financial advisor.
JGIF is managed as an approved 13X fund management company regulated under the Monetary Authority of Singapore. The JGIF is expected to grant first offer rights to the Canadian Solar Infrastructure Fund, a Japanese-listed infrastructure fund holding solar assets managed by the asset management subsidiary of Canadian Solar. This initiative signifies Canadian Solar’s first platform entry into the private institutional capital pool. Within its six-year term, the fund aims to facilitate large-scale investments and will sell to managed funds or on the secondary market to maximise value. Going forward, the fund will also consider green bond placements and project finance loans as it expands its asset portfolio.
According to Canadian Solar, it is in the process of planning similar localised capital partnerships in other parts of the world, including in Latin America and Europe, to help accelerate its global project development platform. Exceeding its 1 billion target, Macquarie also recently raised over 1.6 billion for its Macquarie Green Investment Renewable Energy Fund 2 (MGREF2) financing round. The MGREF2 will invest in solar and wind projects in markets such as Japan, Western Europe, the US, Canada, Mexico, Taiwan, Australia and New Zealand.