Baker & McKenzie recently advised Pacifico Energy K.K. on the JPY 10.98 billion non-recourse project financing of its 32 MW solar power generation facility in Kumenan City, Okayama Prefecture, Japan. The loans were provided by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and The Chugoku Bank, Ltd.

This non-recourse project financing for a foreign sponsor is a key development in Japan's growing renewable energy sector, which has seen a burst of solar project activity by both Japanese and foreign companies since Japan's solar feed-in tariff scheme was introduced in 2012.

GE Energy Financial Services has also invested in the project.

The president of Pacifico Energy, Kazuomi Kaneto, noted: “This transaction is an important milestone for both Pacifico Energy and the Japanese solar market. We look forward to working with our strategic partners to develop many more mega-solar projects in Japan.”

“We are privileged to have advised Pacifico Energy on this groundbreaking transaction and help build a platform for the further development of their business in Japan,” Gavin Raftery, the lead Baker & McKenzie partner on the transaction, commented.

"The availability of non-recourse financing for foreign sponsors in Japan will be very welcome and encouraging news for foreign companies active in the Japanese renewables sector," added Ean Mac Pherson, co-leader of Baker & McKenzie's Renewable and Clean Energy Practice in Tokyo.