#Japan #Battery Storage #Chiyoda #CAPIMA #Abundantia Capital

Introduction

Abundantia Capital, based in Chiyoda, Tokyo, is set to launch a new fund titled "Grid-Use Battery Project Secured Loan Fund #1" on June 23, 2025, at 19:00. This fund is designed to provide loans to promote the growth of renewable energy and stabilize the power systems essential for achieving a carbon-neutral society in Japan.

The Importance of Grid-Use Batteries

Grid-use batteries are large-scale storage systems directly connected to the power grid, playing a crucial role in balancing electricity supply and demand. They serve as a critical stabilizing force for renewable energy sources, which can often be inconsistent. The government has set a target to increase the ratio of renewable energy in the energy mix to 40-50% by 2040. This ambitious goal necessitates a reliable compensating mechanism, a responsibility traditionally handled by fossil fuel power generation, which must now shift to battery storage to align with decarbonization objectives.

The Ministry of Economy, Trade and Industry has identified batteries as a fundamental component in promoting renewable energy through the "Battery Industry Strategy," aiming for the installation of over 24 GWh by 2030. This includes investments in infrastructure, along with support for market entry and development, creating a conducive environment for lithium-ion batteries and enhancing the capabilities in reactive adjustment needed for a modern grid.

The project aligns with these national strategies, targeting funding for essential grid-use battery initiatives to facilitate renewable energy adoption, stabilize electricity supply, and contribute to a decarbonized society.

Funding Utilization and Repayment Scheme

The funding sourced from this new initiative will be allocated to necessary expenses for installing a grid-use battery system in Takana Town, Miyazaki Prefecture. This includes site rental costs, connection construction costs to the power grid, and part of the battery purchase and installation expenses. The selected site has already secured construction preparations, including completion of land improvement works and has obtained connection permits from Kyushu Electric Power.

After certain construction milestones have been achieved, the borrower will acquire additional financing from a financial institution, which will facilitate the repayment to the fund. Preliminary discussions regarding the loan agreement with the financial institution have already taken place.

Unlike typical crowdfunding models that rely on the sale of completed battery facilities for repayment, this fund will repay lenders without requiring the facility to be completed first. Also, the lending agreement is structured as a "recourse loan," allowing for collateral liquidation and claims on the borrower’s other assets if repayment issues arise.

About the Borrower: Yoshikawa Corporation

The borrower, Yoshikawa Corporation, located in Miyazaki City, runs three main business sectors:

1. Renewable Energy: They focus on solar power generation and maintenance, expanding into solar-sharing and grid-use battery projects.
2. Food and Beverage: Operating a chain of grilled chicken restaurants known as "Arashi Bo," they plan to venture into Bali, Indonesia, in August 2024. They also engage in online sales of their products.
3. Container Business: This division handles container sales and modifications and supplies lodging containers for rebuilding efforts post-earthquake in Noto Peninsula.

For more details, visit their website: Yoshikawa Corporation.

Fund Overview

• - Name: Grid-Use Battery Project Secured Loan Fund #1
• - Target Amount: 100 million JPY
• - Funding Duration: 12 months
• - Projected Yield: 8% annually
• - Collateral: Energy facilities and electricity sale claims
• - LTV Ratio: 65.1%
• - Funding Start Date: June 23, 2025, 19:00
• - Funding End Date: July 4, 2025, 24:00
• - Minimum Investment: 10,000 JPY (1 unit)

Funding might close earlier if the target amount is reached.

Special Benefits for Investors

Investors who contribute above certain thresholds will receive special privileges:

• - Benefit 1: For investments over 300,000 JPY - Grilled chicken packs.
• - Benefit 2: For investments over 600,000 JPY - Increased quantity of grilled chicken packs.
• - Benefit 3: For investments over 1,000,000 JPY - A chance to win premium beef in a lottery.
• - Benefit 4: For investments over 3,000,000 JPY - Free stay vouchers for hotel stays.

CAPIMA's Growth and Future Plans

CAPIMA has successfully offered 59 funds amounting to approximately 3.3 billion JPY, with 31 funds repaid without any principal loss. As a leader in renewable energy investments, CAPIMA is committed to creating meaningful capital circulation for companies addressing local issues and contributing to sustainable development.

About CAPIMA

CAPIMA is a lending-based crowdfunding platform that selects quality investment products previously available exclusively to institutional investors. It aims to democratize access to capital markets, allowing individual investors diverse opportunities to invest responsibly in significant social impact projects.

For more information, please visit: CAPIMA.

Conclusion

This new fund represents a significant step towards fostering sustainable energy solutions and underscores CAPIMA's ongoing commitment to facilitating impactful investments in Japan's energy future.