The Asian Banker

Shinsei Bank arranges finance for mega solar business
Jul 17, 2014

Tokyo - Shinsei Bank, Limited (“Shinsei Bank”, the “Bank”) today announced that it has arranged project finance for the construction of a large scale solar power generation (mega solar) plant capable of generating approximately 24.8 megawatts in Nasushiobara-shi, Tochigi Prefecture. The facility will be constructed by a limited liability company (godo-kaisha) invested in by Renova, Inc. (Chiyoda-ku, Tokyo; President and CEO: Yosuke Kiminami; hereinafter “Renova”) and one other company.

The Bank concluded the related loan contract on May 28, 2014. Shinsei Bank has arranged a syndicated loan for this project finance initiative, in which the Bank, the Ashikaga Bank, Ltd (Utsunomiya-shi, Tochigi Prefecture; President and CEO Masanao Matsushita; hereinafter “Ashikaga Bank”), and Joyo Bank, Ltd. (Mito-shi, Ibaraki Prefecture; President: Kazuyoshi Terakado; hereinafter “Joyo Bank”) are participating in financing a total of 7.5 billion yen in construction costs.

Renova spearheaded the entire development process of this project from the development stage of the business plan and, together with another company, established the limited liability company which is the power generation business operator. The power plant on approximately 37 hectares of privately owned forests in Nasushiobara-shi, Tochigi Prefecture, is scheduled to commence operations in September 2015.

Renova is expanding its business in areas such as renewable energy and plastic recycling businesses, and has been involved in the construction and operation of four mega solar facilities which are located in Itako-shi, Ibaraki Prefecture, Futtsu-shi, Chiba Prefecture, and Kikugawa-shi, Shizuoka Prefecture. This is the third project finance initiative that was arranged by Shinsei Bank and Renova. In this project, Shinsei Bank has arranged a syndicated loan as the arranger (lead manager) and agent (loan agent), leveraging its experience in arranging project finance for mega solar businesses.

Shinsei Bank is increasing its efforts in promoting and arranging project finance for renewable energy projects and has arranged financing for a number of projects since fiscal year 2012, having identified renewable energy businesses as a strategic priority business area for the institutional business in the Bank’s Second Medium-Term Management Plan.

Because the renewable energy business can lead to the enhancement of local production-local consumption energy initiatives, the Bank will continue actively promoting local revitalization projects through the enhancement of cooperation with regional financial institutions. Furthermore, the Bank will enhance support for growing companies entering into the new business areas by providing cash-flow based financing which evaluates the potential of businesses.

Re-disseminated by The Asian Banker

Categories: Transaction Banking
Keywords: Shinsei Bank

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