Hudson Sustainable Group closed a mezzanine loan facility of ¥1.4 billion ($12.7 million) with Mitsubishi HC Capital. The mezzanine loan facility, which closed on July 19, is backed by Hudson’s portfolio of 33 operating solar PV assets located throughout Japan. The projects benefit from the 20-year Japanese Feed-in-Tariff (FiT). The portfolio is anticipated to generate approximately 34,000 MWh of electricity and reduce more than 15,800 tons of CO2 greenhouse gas emissions each year. This is Hudson’s first mezzanine financing in 2021 and was arranged by Deutsche Bank. Tokyo International Law Office acted as Hudson’s legal advisor.
Together with the mezzanine financing, Hudson also strengthened cooperation with Mitsubishi HC Capital in renewable energy infrastructure investments as well as venture stage investments in sustainability-focused companies in both Japan and the U.S.
“We are pleased to have earned the trust and backing of Mitsubishi HC Capital in funding our first mezzanine loan in the Japanese market and in pursuing a larger alliance for future sustainable investment. Hudson’s goal is to facilitate a more sustainable world and is excited to partner with Mitsubishi HC Capital in pursuit of that goal,” Neil Auerbach, CEO and managing partner of Hudson Sustainable Group, said.
“As a partner that can support customers in their own ambitious endeavors, we will provide new social value while solving their problems. We will continue to contribute to realizing a sustainable society through collaborative business with Hudson Sustainable Group, LLC,” Keigo Nakamura, senior corporate officer and general manager of business department sector No. 3 at Mitsubishi HC Capital, said.
