Japan's RENOVA invests USD 25m in US Pathway Power

Japanese renewable power producer RENOVA Inc (TYO:9519) has signed an agreement to underwrite USD 25 million (EUR 22.8m) worth of convertible notes to be issued by California-based renewable energy developer Pathway Power LLC.

Pathway Power focuses on the development and operation of solar, renewable and storage power facilities in the US, where it currently has more than 4 GW of projects.

Under the deal, the notes can be turned into common shares three years after the signing. It also enables Renova to make an equity investment of up to 49% in individual projects with a capacity of up to 1 GW if certain conditions are met.

The Japanese company said it plans to collaborate with Pathway Power in several sectors such as business management, human resources, engineering, procurement and finance, as well as take part in individual projects.

“Given the expected further growth in the renewable energy market in the United States, taking the first step to develop business in the United States is highly significant for RENOVA. We aim to achieve substantial growth in the US market together with Pathway Power,” RENOVA's President & CEO Yosuke Kiminami noted.

(USD 1.0 = EUR 0.914)

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