Spain’s Gestamp Solar received ¥11.1 billion
($109 million) in non-recourse financing from Deutsche Bank for
its first Japanese photovoltaic project. It is a rare case of a
project having both a foreign lender and sponsor in the
Taking advantage of Japan’s favourable feed-in
tariff (FIT), Gestamp plans to build a 31.6 megawatt (MW)
project in Ibaraki prefecture.
Its financing was the largest-ever non-recourse solar
financing in Japan. But to close the deal, it needed to
overcome domestic challenges, particularly in relation to land
More foreign lenders and sponsors are expected to follow
both Gestamp and Deutsche Bank.
"Solar energy is the first infrastructure space in Japan
that foreigners can enter on a more level playing field with
the Japanese domestic supply chain, because everyone is still
coming to terms on how it should work," said Joshua Isenberg, a
partner at Paul Hastings.