Japanese renewables developer Shizen Energy is considering a partial sale of its projects portfolio, according to five sources familiar with the matter.

BofA Securities is advising, four of the sources said.

They did not comment on the valuations sought or the exact size of the portfolio.

The sale is part of a broader capital raising exercise to raise growth capital, said three of the sources, with one adding that the company seeks to raise approximately USD 200m.

CDPQ-backed Shizen Energy aims to diversify its capital base and introduce new investors, while exiting some assets in the process, one of the sources said.

It aims to sell its mature assets, two sources said. It plans to sell under-construction or shovel-ready assets and reinvest the proceeds in development-stage ones, according to one source.

The portfolio for sale includes 300 MW worth of solar in Japan, according to another source.

The sellside has reached out to potential investors and is in early-stage discussions, the sources said.

BofA Securities declined to comment. Shizen Energy did not respond to a request for comment.

Shizen Energy has set its sights on overseas expansion, with ambitions in Australia, Korea, Taiwan and possibly the US. In Malaysia, it seeks to jointly develop ground-mounted and floating solar with state-owned Majuperak Holdings.

Founded in 2011, Shizen Energy has around 1 GW in operational projects across solar and onshore wind. In Japan, it has an 860.1 MW operating portfolio, 81.8 MW under construction, and over 3 GW in early development stages, according to its website.

In Southeast Asia, Shizen has over 2.2 GW combined in early-development projects across Vietnam, the Philippines, Thailand, Malaysia, and Indonesia. It is also developing 176.5 MW in Korea, 150.5 MW in Australia and New Zealand, and 176.4 MW in Brazil, the website shows.

In 2022, Canadian pension fund CDPQ invested JPY 20bn (USD 135m) in Shizen Energy and agreed on another JPY 50bn (USD 339m) for potential co-investment opportunities. In February 2024, CDPQ made its first co-investment with Shizen, buying 80% of a 31 MW operational Japanese solar plant.