Three Korean life insurance companies have arranged financing to acquire a 41.3 MW solar plant being built in Kagoshima, Japan, by Solariant Japan.
Kyobo Life, Hanwha Life and Heungkuk Life have each completed equity and a mezzanine debt financing deal with Japanese lenders Shinhan Bank and Mitsubishi UFJ to acquire the plant for a total investment of $172 million.
This consortium will acquire full membership interest in Solariant Portfolio Two, LLC, which is the project company established to develop the solar farm, which is scheduled to be completed in the first quarter of 2017.
Management of the plant will be handed to Genkai Capital, a Japanese asset management company, and Tokyo Electric Power Company, which is Japans largest utility.
The solar farm will be developed under Japans FIT program, and will receive a rate of $0.33/kWh for the solar energy generated. Kyushu Electric Power Company (KEPCO) has signed a PPA of 20 years for the plants electricity.
Solariant delivered on triple bottom line goals environmental, social and economic throughout the planning of the facility, which fit Kyobo Lifes corporate sustainability management framework, said Solariant managing directors Daniel Kim and Ric Tan.
In securing the solar farm, Kyobo Life has become Koreas first institutional investor to join the UN Global Compact, which recognizes those companies that are proactive in tackling climate change.