EF BRIEFS: Canadian solar bond, Luxcara, Chicago Water

Channels: Debt, Equity, Green Bonds, Renewables

Companies: Connor, Clark & Lunn Infrastructure, Samsung Renewable Energy, Six Nations of the Grand River Development Corporation, Luxcara, Metropolitan Water Reclamation District of Greater Chicago

People: Matt O'Brien

Solar bond raises C$613m

One of the largest renewables bonds ever issued in Canada has raised C$613 million ($480 million).

The proceeds of the 'solar bond' were used to refinance the 100MW Grand Renewable Solar Project's existing bank debt and swap facilities.

The project bond was issued by Grand Renewable Solar LP. Its coupon was "under 4%" and the bond matures in 2035, according to a spokesperson for Connor, Clark & Lunn Infrastructure (CCLI), one of the owners of the project alongside Samsung Renewable Energy, and Six Nations of the Grand River Development Corporation. Further financial details were not disclosed.

The bond was bought by "a broad base of Canadian and US investors", according to Matt O'Brien, President of CCLI. "The replacement of our existing bank debt with this long-term bond further derisks this important investment for us, a core holding in our growing infrastructure portfolio," he added.

The project began commercial operation in March 2015 after a 21-month construction process.

Luxcara increases renewable energy fund to €170m

German asset manager Luxcara has reached a fifth close of its latest renewable energy fund, increasing its size to €170 million ($190 million).

"We are delighted that the majority of investors from our previous fund have also invested in our third renewable energy infrastructure fund and that we have succeeded in attracting further major investors," said Kathrin Oechtering, managing partner of Luxcara.

"So far, we have already invested 80% of the capital since the fund was launched in September 2015."

The fund invests in solar and wind, and is open to institutions, who are offered subordinate bonds, securitisation options and direct investments.

The three renewables funds are invested in Germany, the UK and Norway, with a combined total output of nearly 190MW and a value of €500 million.

Chicago water municipality returns to the green bond market

The Metropolitan Water Reclamation District of Greater Chicago has returned to the green bond market one year after its inaugural $225 million issue.

This time, the district water authority plans to tap the market for $9 million, which, like the previous bond, will be used to fund various water and energy conservation projects.

The bond will have a maturity of 20 years and a coupon of 4% and is expected to go on sale on 29 July.