Etrion Green Project Bond Wins Best Structured Product of 2019

GENEVA, Switzerland, April 16, 2020 (GLOBE NEWSWIRE) -- Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), a solar independent  power  producer, announces that its green bond was recognized as “The Best Structured Product of 2019” by J-Money, the Japanese financial journal (former Euromoney Japan). The JPY 15.9 billion (approximately US$148 million) bond was issued in June 2019 and was the largest green project bond issued in Japan to date.

The Etrion green bond is a non-recourse project finance product for the Company’s 45 megawatt (“MW”) Niigata solar power project under construction in Japan. The robust financing structure, including a backup contractor, was a deciding factor in the award selection, among other criteria such as size, execution and impact on the market. The bond was arranged by Goldman Sachs Japan Co., LTD.

Management Comments
Martin Oravec, Etrion’s Chief Investment Officer, commented: “We are very proud of the brilliant execution by our Japanese and international teams, and we are delighted to be recognized by such a well-regarded financial publication as J-Money. This award highlights another innovative financing by Etrion, which has successfully executed more than US$1 billion of solar project finance loans and bonds across three continents over the past decade. We look forward to continuing to deliver profitable solar projects in the near future to create value for our stakeholders.”

Niigata is a 45 MW ground-mounted, fixed-tilt solar photovoltaic power project being built on one site in the Niigata prefecture of Japan. Construction-related works began in July 2019, and the construction is proceeding on budget and schedule. The project is expected to be fully operational by the fourth quarter of 2021. The project company entered into an effective 18-year power purchase agreement (“PPA”) with Tohoku Electric Power Co., Inc. utility and will receive ¥36 per kilowatt-hour (“kWh”) of electricity produced (approximately US$0.34 per kWh). Etrion owns 100% of the Niigata project. The total project cost is expected to be approximately JPY 16.7 billion (US$155 million), including VAT, and was financed 95% through the non-recourse green project bond with a tenor of construction period plus 16.8 years. The remaining 5% of total project cost was funded by Etrion. The all-in annual interest rate of the bond is fixed at 1.2%. The lender to the Niigata project is the Green Project Bond Trust, which issued asset-backed securities and loans, rated at BBB, fully underwritten by the arranger Goldman Sachs and sold to investors.