Company Update (NASDAQ:CSIQ): Canadian Solar Inc Issues JPY3.0 Billion Solar Project Bond in Japan

Canadian Solar Inc (NASDAQ:CSIQ), one of the world’s largest solar power companies, announced that it has entered into a financing agreement, pursuant to which, Goldman Sachs Japan Co., Ltd. has agreed to arrange a JPY3.0 billion ($26.0 million) project finance bond for Canadian Solar’s 10.2 MWp Aomori-Misawa Solar Power Plant in Rokunohe-cho, Kamikita-gun, Aomori Prefecture, Japan.

The non-recourse bond, which is backed by the project assets, has a maturity of 20 years, including a 2-year grace period, and a fixed coupon rate of 1.4%. Goldman Sachs Japan Co., Ltd. acted as the bond arranger and Shinsei Trust and Banking Co., Ltd. as the lender.

The 10.2 MWp Aomori-Misawa Solar Power Plant received an investment grade rating of “A” from Japan Credit Rating Agency, Ltd. The project is expected to reach commercial operation in December, 2016. The electricity generated from this solar plant will be purchased by Tohoku Electric Power Co., Inc. under a 20-year feed-in-tariff contract at the rate of ¥36.00 yen ($0.32) per kWh.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar Inc. commented, “We are very proud to announce this important financing arrangement in Japan. In addition to giving us access to a very low-cost source of financing for our projects, this transaction is the first asset-backed security arranged by a foreign sponsor in the Japanese PV sector. In addition, the A investment grade rating is so far the highest for all PV-related project bonds issued in Japan, a testament to the high quality and bankability of Canadian Solar’s project pipeline in Japan.” (Original Source)

Shares of Canadian Solar closed yesterday at $20.42. CSIQ has a 1-year high of $40.08 and a 1-year low of $14.16. The stock’s 50-day moving average is $20.10 and its 200-day moving average is $21.36.

On the ratings front, Canadian Solar has been the subject of a number of recent research reports. In a report issued on February 16, Canaccord Genuity analyst Jonathan Dorsheimer reiterated a Buy rating on CSIQ, with a price target of $35, which implies an upside of 71.4% from current levels. Separately, on the same day, FBR’s Carter Driscoll maintained a Buy rating on the stock and has a price target of $32.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jonathan Dorsheimer and Carter Driscoll have a total average return of -5.9% and -19.3% respectively. Dorsheimer has a success rate of 41.0% and is ranked #3382 out of 3664 analysts, while Driscoll has a success rate of 22.0% and is ranked #3554.

The street is mostly Bullish on CSIQ stock. Out of 4 analysts who cover the stock, 4 suggest a Buy rating . The 12-month average price target assigned to the stock is $26.00, which represents a potential upside of 27.3% from where the stock is currently trading.

Canadian Solar Inc is a solar power company. The Company designs, develops and manufactures solar wafers, cells and solar power products.

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