Boustead Singapore inks deal with Kinnarii Power Assets

It'll enter solar power market in Japan with 73,001 new shares.

Accoring to a release, Bousted Singapore’s wholly-owned subsidiary, Boustead Knowledge Pte Ltd has on 15 March 2013 entered into a joint venture with Kinnarii Power Assets Pte Ltd, a Singapore-based regional-focused renewable project developer, to develop utility-scale solar photovoltaic projects in Japan.

To this end, Boustead Knowledge has entered into a shareholders agreement dated 15 March 2013 with Kinnarii and Mr Choi Wai Keong, a shareholder of Kinnarii and covenantor to the obligations of Kinnarii under the Joint Venture. 

Pursuant to the Shareholders Agreement, Boustead Knowledge will subscribe for 73,001 new shares of S$1 each in Kinnon Green Pte Ltd, amounting to 50% of the of the total issued share capital in Kinnon Green plus one share.

The total subscription amount of S$73,001 will be financed by the conversion of S$73,001 out of a loan of S$147,001 already extended to Kinnon Green by the Company as part of a collaboration agreement with Kinnon Green.

Kinnarii will hold the remaining 73,000 shares of S$1 each in Kinnon Green.Kinnon Green owns the rights to a 20MW (10x2MW) solar photovoltaic power generation portfolio in Kyushu, Japan.

Half of the Portfolio (5x2MW or 10MW in total) has been given the final interconnection agreement from Kyushu Electric, the regional power off-taker and grid operator, with the other half expected by end March 2013.

The development of the Portfolio will take place in stages – the total implementation cost is estimated at around S$75 million and will be financed by a mixture of equity and long-term bank loans.