Japan Asia Group to Raise 4.4 Bln Yen Through Securitization Scheme

2014/07/18 04:50
Kenji Kaneko, Nikkei BP CleanTech Institute
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JAG Energy Co Ltd announced July 16, 2014, that it will raise a total of about ¥4.4 billion (approx US$43 million) through a securitization scheme.

JAG Energy (Chiyoda Ward, Tokyo) is affiliated with Japan Asia Group Ltd. It develops and runs solar power generation projects, etc. The raised money will be used for three mega (large-scale) solar power plants: "Ashigara Oi Solar Way" in Kanagawa Prefecture, "Kamagayama Solar Way" in Ibaraki Prefecture and "Himeji Solar Way" in Hyogo Prefecture.

Those power generation projects were rated A (single A flat) by Rating and Investment Information (R&I) Inc. And Shinsei Trust & Banking Co Ltd will issue rated securities and redeem them by raising money from investors (so-called project bond) to realize a nonrecourse loan.

This will be the third time that JAG Energy has raised a fund through a securitization scheme. The number of the company's mega solar projects financed through a securitization scheme will be seven. The arranger is Goldman Sachs.

Japan Asia Group has already announced the overview of Ashigara Oi Solar Way. Its output capacity is about 13MW. The solar panel and PV inverter employed for the plant are products of Toshiba Corp and Toshiba Mitsubishi-Electric Industrial Systems Corp (TMEIC), respectively. TOko Electrical Construction Co Ltd will provide EPC (engineering, procurement and construction) services.