Canadian Solar, a Tier-1 solar company, has received $141.5 million in project financing from South Korea’s Hanwha Asset Management to fund the construction and operation of a large-scale solar farm in Japan.
Located in Yamaguchi prefecture, the 55 MWp solar plant will augment Canadian Solar’s growing downstream solar pipeline in the country, and represents the largest single investment for the company in Japan to date.
The finance is being offered as a non-recourse term loan facility, arranged by Hanwha Asset Management with a maturity of 17 years. Seoul-headquartered Hanwha Group operates directly in the solar industry under its Hanwha Q Cells brand, and has a number of vested renewable energy interests.
"Renewable energy is a focus sector for Hanwha," said Hanwha Head of Global Alternative Investments, Ju Su Lee. "We are pleased to arrange this facilty for Canadian Solar in support of their growth plans in Asia."
Canadian Solar CEO and chairman Shawn Qu said that the investment represents a "significant milestone in the build-out of our solar power pipeline", adding: "Japan is a key growth market for the company, where we have 597 MWp of utility-scale projects in late-stage development."
In its third quarter (Q3) financials, Canadian Solar confirmed that the process of developing and transferring solar power projects will become an important strategy as the company bolsters its downstream business and augments its balance sheet. Canadian Solar’s global late-stage solar project pipeline is close to 2 GW, while plants in operation now total 948 MWp.