Canadian Solar gets nod to list Japanese ‘yieldco’

The Ontario-based developer is listing 72.7MW of assets on the Tokyo Stock Exchange.

Developer Canadian Solar has received approval from the Tokyo Stock Exchange to list a portfolio of Japanese solar assets. 

The portfolio will be housed in a vehicle dubbed the Canadian Solar Infrastructure Fund, which will serve as a long-term holding company for solar projects primarily in Japan. Affiliates of Canadian Solar will seed the vehicle with 13 assets with a combined capacity of 72.7MW, while continuing to manage, operate and maintain the assets. 

The Canadian Solar Infrastructure Fund will be listed on 30 October, joining three other funds sponsored by local developers. It will be the largest vehicle in terms of portfolio size to join Japan’s two-year-old infrastructure fund market. 

The market was launched in April 2015, to tap private sector capital for the country’s green infrastructure by allowing firms to list their assets. It did not see its first listing until June 2016, though, with the Takara Leben Infrastructure Fund – this followed tax reforms that allowed renewable energy investment corporations to be substantially exempted from corporate tax for 10 to 20 years.

The Japanese infrastructure fund market has currently only seen listings of solar portfolios, but it has subsequently been opened to other infrastructure sectors such as transportation, power grids and transmission, as well as water and telecommunications.