Canadian Solar announced that Canadian Solar Infrastructure Fund priced its initial public offering of 177,800 investment units at 100,000 Japanese yen per unit, before underwriting discounts.
Of the units included in the offering, Canadian Solar will purchase 25,395 units as the designated purchaser.
The units of CSIF are expected to list on the Tokyo Stock Exchange on October 30, 2017. CSIF plans to use the net proceeds from the offering and anticipated borrowings of JPY 17.7 billion (approximately $156 million) to consummate the acquisition of its initial portfolio.
Subsidiaries of Canadian Solar in Japan are contributing 13 solar power projects with a total installed capacity of 72.7 MWp to CSIF as its initial portfolio. Net sale proceeds to Canadian Solar from these assets amounted to JPY 30.4 billion (approximately $270 million).
Canadian Solar expects to use a part of the net sale proceeds to immediately reduce its overall debt leverage by JPY 18.7 billion (approximately $165 million) and to further strengthen its liquidity.
Canadian Solar Asset Management K.K., a wholly owned subsidiary of the Company, will manage CSIF as its asset manager. Canadian Solar O&M Japan K.K., a wholly owned subsidiary of the Company, will provide operation and maintenance services to CSIF.