C2C Power Financing, a Canadian subsidiary of Japanese corporate Mitsui and Co has received a C$795mn loan from Japanese financiers for wind and solar projects.
The Japan Bank for International Co-operation (JBIC) provided C$477mn of the overall loan, with co-financing from private financial institutions, BTMU, Mizuho Corporate bank and Sumitomo Mitsui Banking Corporation.
C2C, co-invested by between Mitsui, French energy firm GDF Suez and a consortium led by Canadian infrastructure fund Fiera Axium Infrastructure, will use the proceeds of the loan to build and operate three wind power stations with a combined capacity of 248MW, and two solar power stations with a combined capacity of 20MW, in Ontario and British Columbia. The electricity generated from the projects will be sold under various 20-year contracts.
JBIC says that providing the loan in local currency minimises the currency risk of dealing with the project owners, therefore supporting long-term overseas project by Japanese companies.
The project is part of JBIC’s enhanced facility for global co-operation in low carbon infrastructure and equity investment (E-face), aligned with the Japanese government’s efforts.