China’s 1st Solar Securitization Launched By Shenzen Energy

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Originally published on Sustainnovate.
By Henry Lindon

Shenzen Energy Launches China’s First Solar Securitization With CNY1 Billion Tranche

Shenzhen Energy recently launched what represents the first solar securitization in China, which will see bonds offered with a CNY1 billion tranche (roughly $150 million), according to recent reports.

The Bank of China’s investment arm — BOC International — was reportedly the underwriter for the bonds, which are backed against future revenues from solar projects owned by Shenzhen Energy. The bonds will have an interest rate of between 3.6% and 4.5%.

While the move is, for now, somewhat novel for China, the securement of finance via the future income of solar projects is not rare in the US — with the solar leasing company SolarCity being a good example of those pursuing such strategies.

The new bonds from Shenzen Energy are reportedly quite competitive for the market. It’ll be interesting to see what happens in the near future, with regard to other companies that are watching the move’s implementation.

Image by Christina B Castro (some rights reserved)


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