JAG to raise $47.6 million with project bonds in Japan


The company — a unit of Tokyo-listed infrastructure development consultancy Japan Asia Group — is issuing non-recourse project-finance bonds to finance the installation of the ¥65 billion PV array.

Goldman Sachs Japan is acting as lead arranger in the issuance of the A-rated notes, with Hitachi Capital Trust serving as trustee.

JAG did not reveal additional details about the bonds.

The company first announced plans to construct the project in November 2015. It expects to finish building it according to schedule in March.

The plant will generate enough electricity for 5,130 homes per year. The electricity will be sold to regional utility Tokyo Electric Power (Tepco) at a rate of ¥36/kWh.

Kyocera has supplied the PV modules for the project, while Toshiba Mitsubishi-Electric Industrial Systems (TMEIC) has provided the inverters.

Toko Denko is handling EPC for the array, which is being built on forested land near Shimotsuke, Tochigi prefecture. JAG had to apply for a forest redevelopment permit after acquiring the 20.3-hectare site from Osaka-based food processor Maruha Nichiro.

JAG started focusing on bond funding to finance the development of solar projects several years ago, after it struggled to obtain non-recourse loans from major Japanese banks.

Goldman's Japan unit has arranged non-recourse project bonds several times in recent years, including a $26-million issuance in early 2016 that Canadian Solar used to facilitate the development of a 10.2 MW solar array in Aomori prefecture.

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