Canadian Solar has raised JPY 22 billion ($208 million) and closed the Japan Green Infrastructure Fund (JGIF) along with the fund's financial advisor and minority investor, Macquarie Advisory & Capital Solutions, part of the Macquarie Group of Australia. Canadian Solar and Macquarie are 67% and 33% shareholders in the fund, respectively.
Proceeds will be used to develop, build and accumulate new solar projects in Japan, said Canadian Solar and added that this platform marks its entry into the private institutional capital pool.
The fund will enable the partners to accelerate the development of new projects in Japan with clear monetization strategies. In the future with its expanding asset portfolio, the fund will consider green bond placements and project finance loans as well.
The fund is expected to grant first offer rights to the company's Japan listed infrastructure fund called Canadian Solar Infrastructure Fund (CSIF) that holds operational solar assets of the group.
To fund its global project development platform, Canadian Solar's Chairman and CEO Dr. Shawn Qu shared his company is in the process of planning similar localized capital partnerships in Latin America and Europe, among other regions.
Recently, Macquarie Group's GIG managed Renewable Energy Fund 2 raised over €1.6 billion in investor commitments to invest in solar and wind portfolio in select geographies (see RE Fund 2 Of Macquarie's GIG Raises Over €1.6 Billion).