Three Korean life insurance companies, Kyobo Life, Heungkuk Life and Hanwha Life, jointly completed an acquisition of a 41.3MW solar power plant in Kagoshima, Japan from the original developers, Solariant Japan and Yingli Solar.
In a deal transaction totaling 20.7 billion JPY, the consortium of the Korean investors completed both an equity and a mezzanine debt financing with Shinhan Bank and Mitsubishi UFJ Leasing to provide senior project debt. The investors also acquired full membership interest in Solariant Portfolio Two, LLC. which serves as the project company established for development of the 41.3MW utility scale solar project, through KIAMCO's Kirishima Solar Fund Private Placement Special Asset Investment Trust.
The Kagoshima project utilizes 132,000 PV modules and is scheduled to be completed in the first quarter of 2017. The power generation expectation is 50,000,000 kWh per year, enough for 16,000 average Japanese homes and for offsetting 740 million MT of CO2 emissions.
The power plant is being constructed by Tokyo Energy & System Inc., the EPC service provider. Genkai Capital, a Japanese asset management company, and Tokyo Energy & System Inc. will manage the solar power plant over 20 years.
The electricity generated by the plant will be sold by 40 yen/kWh under Japan’s feed-in tariff schemes.