CSIF acquired a Green Finance Evaluation (Green 1 (g1/m1)) based on the green finance evaluation method of Japan Credit Rating Agency, Ltd. (hereinafter referred to as “JCR”) for the borrowing for property acquisition that was made when CSIF was listed in the infrastructure fund market of the Tokyo Stock Exchange in October 2017. In May 2020, CSIF acquired an overall evaluation of Green 1(F) (g1(F)/m1(F)) as a result of the Green Finance Framework Evaluation by JCR for the Issuer’s framework for use of proceeds, management, operation, and disclosure, etc. at the time of property acquisition and refinancing. On January 26, 2021, CSIF issued the first Green Bond (Credit Rating: A)(Green 1) to expand investor base who are willing to invest in ESG, promoting ESG related activities.
JCR Green Finance Framework Evaluation Results
|Overall Evaluation Green 1（F）|
|Greenness Evaluation (Use of Proceeds) g1（F）|
|Management, Operation and Transparency Evaluation m1（F）|
The JCR Evaluation Outline
Evaluation Phase 1: Greenness Evaluation
The use of proceeds are green projects that contributes to the decarbonization of renewable energy, and that it has a high environmental improvement effect. When acquiring the power generation facilities, CSIF checks the expected negative environmental and social impacts of the project by the department which has technical experts after receiving a technical assessment report from a third party. If there is a risk, CSIF implements countermeasures. Through assessing the process described above, JCR evaluates that it is highly unlikely that the negative impacts will exceed the environmental improvement effects. As a result, JCR assigns "g1 (F)" for the "Greenness Evaluation (Use of Proceeds)".
Evaluation Phase 2: Management, Operations and Transparency Evaluation
In CSIF, eligibility criteria and selection processes for green projects have been established. The proceeds will be allocated to eligible projects promptly. Funding allocation status and environmental improvement effectiveness reporting is scheduled to be published regularly and KPIs related to environmental improvement are appropriate. CSIF’s environmental initiatives are also being actively undertaken centered by CSAM and the Canadian Solar Group. Accordingly, JCR confirmed that the Canadian Solar Group has established an appropriate management and operation system and has a high degree of transparency in green finance. As a result, JCR assigns "m1 (F)" for "Management, Operation and Transparency Evaluation."
Issuance of Green Bond
|Isuuance Date||Redemption Date||Credit Rating＊||Press Release|
Corporation / The 1st
Unsecured Bond (Green Bonds
|3,800||0.80||Jan 26, 2021||Jan 26, 2026||A||CSAM|
＊Japan Credit Rating Agency, Ltd.