Macquarie Capital worked with Canadian Solar to develop a bespoke fund financing solution for its Japanese energy business to help accelerate projects development and enhance their economics.
It assisted with its establishment, structuring and ¥22billion capital raise through a comprehensive syndication of the third-party debt capital from international institutional investors looking to gain exposure to a steady yielding fixed income loan.
A majority-owned venture of Canadian Solar Inc., the Fund was established with the aim of increasing capital efficiency for CSI’s under-construction solar projects in Japan and to capitalise on opportunities to acquire Ready-To-Build solar projects in the secondary market.
The transaction demonstrates Macquarie’s deep client knowledge, leading solar sector expertise, and broad structuring capabilities. Leveraging its longstanding relationships with a diverse pool of institutional investors, Macquarie Capital introduced differentiated access to low-cost, efficient capital for CSI.
Macquarie Capital was able to cohesively structure and optimise the transaction to satisfy the requirements of both the client and investors across several key objectives, including economic, regulatory, tax, and accounting considerations, and led the complex execution process across multiple jurisdictions involving multiple principals and advisors.
Macquarie Capital’s investment alongside CSI has facilitated the arrangement of third-party capital at attractive terms through alignment of interest between the parties.
The platform concept is scalable in the high growth renewables space where large institutional investors are keen to deploy substantial capital. The Fund will further consider green bond placements and project finance loans as it expands its asset portfolio.
in Asia for ready-to-build solar assets
where large institutional investors are keen to deploy substantial capital