Vena Energy and CDPQ announce first green project bond in Japan – EQ Mag Pro
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The inaugural project bond will finance an operational and fully contracted solar project in Japan, which has a capacity of 35 MW
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Total transaction value of JPY 9.3 billion (approximately CAD 90 million)
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This is CDPQ’s first financing of a renewable energy project in Japan
Vena Energy, a leading renewable energy company in Asia Pacific, and global investment group CDPQ announce today that they have concluded an agreement for a JPY 9.3 billion green project bond (approximately CAD 90 million). The transaction marks Vena Energy’s inaugural foray into the international project bond market and CDPQ’s first financing of a renewable energy project in Japan. The proceeds will be used to finance one of Vena Energy’s operational solar projects in Japan, in line with Vena Energy’s Green Financing Framework.
Located in the Fukushima Prefecture, the 35 MW solar energy project can supply more than 7,000 Japanese households with renewable energy per year. Compared to conventional thermal generation, it has the potential to reduce up to 22,283 tonnes of greenhouse gas emissions yearly, while saving approximately 35,000,000 litres of water.
“As the demand for clean energy is rising globally, this financing is well aligned with our strategy to support high-quality and essential infrastructure assets that contribute to the energy transition,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ. “We are pleased to partner with Vena Energy, a major independent power producer in Asia-Pacific, which will accelerate our capacity to diversify our presence in this evolving market.”
“This innovative green project bond marks an expansion of Vena Energy’s debt capital market activities from corporate to project level, further diversifying our financing sources and increasing our flexibility to fund future growth,” said Simone Grasso, Chief Investment Officer of Vena Energy. “We are delighted to collaborate with CDPQ on this transaction, which represents another step towards decarbonizing the real economy and accelerating the energy transition across the Asia Pacific region.”
ABOUT CDPQ
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public retirement and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at As at June 30, 2022, CDPQ’s net assets totalled CAD 391.6 billion.
ABOUT VENA ENERGY
Headquartered in Singapore, Vena Energy is a leading renewable energy company in the Asia-Pacific region that owns, develops, constructs, operates, manages, and commercialises a renewable energy portfolio totalling 35 GW (1) of solar, onshore wind, offshore wind, battery storage and hybrid renewable energy projects. Vena Energy has a fully integrated business model and an extensive local presence throughout the region with 67 corporate and site offices in Australia, India, Indonesia, Japan, Philippines, Singapore, South Korea, Taiwan, and Thailand. Vena Energy is committed to engaging with local communities throughout the lifecycle of its portfolio projects, as well as incorporating internationally recognized Environmental, Social and Governance (ESG) standards into its strategy and business practices.
Source: cdpq
