Daiwa Securities Raises Capital for Solar Projects From Investors

2013/11/01 10:25
Kenji Kaneko, Nikkei BP CleanTech Institute
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Daiwa Securities Co Ltd announced that it dealt with a private placement for the mega-solar (large-scale solar) power plant project developed and run by DK Energy and the invested money was transferred Oct 25, 2013.

The private placement was targeted at anonymous associations. DK Energy is an electricity producer (limited liability company) funded by Daiwa PI Partners Co Ltd, which is affiliated with Daiwa Securities.

DK Energy will build a mega-solar plant with an output power of about 1MW in Kanonji City, Kagawa Prefecture, Japan, by using a capital of about ¥400 million (approx US$4.07 million) provided by The Dai-ichi Life Insurance Co Ltd and Daiwa PI Partners, which are Japan-based institutional investors.

DK Energy plans to start construction of the plant in November 2013 and operation of the plant in April 2014.

In June 2013, Daiwa Securities and The Dai-ichi Life Insurance reached a basic agreement that The Dai-ichi Life Insurance would invest in DK Energy, which was established by the Daiwa Securities group. The mega-solar plant in Kanonji City will be the first project financed by the two companies.

In addition, they are planning to launch another mega-solar project in Aichi Prefecture. The power generation capacity of the two plants combined will be about 3MW. And the total investment will be about ¥900 million (approx US$9.15 million), of which The Dai-ichi Life Insurance plans to invest up to 50%.

The solar panels used for the two plants will be supplied by Kyocera Corp. In Japan, there is a growing trend of securities companies and other organizations securitizing mega-solar projects and collecting money from institutional and individual investors for investment.