Barclays backs 14.5 MW in Japan with $42 million of project bonds

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The transaction marks the U.K. banking and investment giant’s entry into Japan’s nascent market for renewable-energy project bonds. Tokyo-based PV developer Renewable Japan sponsored the securities, which were mainly sold to banks and insurance firms. Hitachi Capital Trust served as trustee, according to an online statement.

Kyoto Nantan GK will operate the solar array in Nantan, Kyoto prefecture. No additional details about the project were disclosed.

Barclays first announced plant to offer solar bonds in Japan in late 2015. At the time, it vowed to finance the development of up to 300 MW of PV capacity throughout the country.

Rival Goldman Sachs took an early lead in arranging financing for PV projects in Japan back in 2013. In April, the U.S. investment firm helped Canadian Solar raise $47 million to finance the construction of 19 MW in Gunma prefecture, by issuing a dual-tenor green project bond. And earlier this month, Japan Renewable Energy (JRE) — a Tokyo-based developer backed by Goldman Sachs — finished building a 22 MW solar project in northern Japan’s Aomori prefecture.

Renewable Japan claimed to have roughly 500 MW of renewables in development by the end of July. The Tokyo-based company has been particularly active this year, with a number of small PV projects newly completed throughout the country. In May, it finished a 2.9 MW solar project in Izunokuni, Shizuoka prefecture, as well as a 1.19 MW installation in Taki, Mie prefecture. And in July, it finished installing 1.38 MW of Mitsubishi Electric PV modules at a site in Hokuto, on the northern Japanese island of Hokkaido.

Earlier this month, Renewable Japan announced a partnership with property developer Tokyu Land. They agreed to jointly develop 250 MW of solar, with Renewable Japan on board to handle EPC and O&M duties.

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