Etrion announces Japanese solar portfolio buyout

January 16 (Renewables Now) – Solar power producer Etrion Corp (TSE:ETX) on Thursday said it has bought out minority shareholders in its Japanese solar portfolio, thus boosting its net solar capacity to 56.8 MWp from 47 MWp.

Etrion has paid a total of USD 4.4 million (EUR 3.94m) for the minority stakes in four projects held by Hitachi High-Technologies Corporation (TYO:8036) and for the stake of Tamagawa Holdings Co Ltd (TYO:6838) in its 9.5-MWp Misawa solar farm.

In addition, the company renegotiated the operations and maintenance (O&M) contracts provided by Hitachi on better terms with other companies within the Hitachi group. Etrion also took over two asset management contracts from Hitachi and as of this month provides asset management services for all projects in its portfolio.

Etrion said it has also transferred its solar portfolio into a so-called TK-GK structure, which is currently the standard on the Japanese market, expecting improved cash flow distributions and other benefits as a result.

To pay for the costs and fees related to this transaction, the company has increased the project debt in the 9.3-MWp Mito project by JPY 295 million (USD 2.7m/EUR 2.4m) and will repay it with the remainder of the existing loan.

As a result of the moves described above, the company is publishing five-year projected averages:
— power production of 62.4 GWh a year
— revenue of USD 21.7 million a year
— EBITDA of USD 15.7 million a year
— after-tax free cash flow at project level of USD 4.9 million a year.

Actual revenues are generated in JPY and the company has used an exchange rate of JPY 109 = USD 1 for presentation purposes.

(JPY 100.0 = USD 0.909/EUR 0.815)

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