Operation Strategy

External Growth Policy
Internal Growth Policy
Debt Profile
CSIF’s Mid- to Long-term Strategy/ Renewable Energy Market Environment

External Growth Policy

In response to the expanding secondary market, CSIF has been actively acquiring "third-party developed projects" in addition to sponsor-developed projects. Sponsor Group has won bids* totaling ~180MW of mega solar power projects, which have been certified under the FIT/FIP systems, and is expected to continue offering solid pipeline to CSIF.

In an environment where FIT prices are decreasing and installation costs of solar power generation facilities are falling as a result of technological innovations, the CPPA market is expected to grow against the backdrop of strong demand for renewable energy from corporate users. Under such circumstances, CSIF plans to prepare for the future market by acquiring FIP/CPPA projects and also looking into possible collaboration with corporate off-takers.

Accelerating AUM growth in the medium term by acquisitions of third-party development projects

As of December 31, 2025

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

Internal Growth Policy

CSIF plans to avert losses of electricity sales revenue due to output curtailment and to capture upside opportunities by considering FIT-to-FIP conversions and installing storage facilities in alliance with aggregators

The scheme is expected to bring revenue larger than the fixed FIT price and drive internal growth

In terms of cost management, CSIF will look at the O&M costs, which account for a relatively large share, and will review existing service agreements at the time of upcoming renewal, aiming to adjust new service fee to the prevailing market level in order to achieve cost reduction.

Diagram of the scheme for conversion from FIT to FIP with battery storage facilities

The aggregator prepares battery storage operation plan and bears imbalance risks, while CSIF works to increase FIT revenue

Revenue plan

CSIF seeks to ensure revenue larger than the FIT price by sharing “revenue from electricity sales at market + premium revenue – FIP standard price x actual power output”

Mass Renewable Energy Introduction / Next Generation Energy Network Committee established by the Agency for Natural Resources and Energy of Japan emphasizes the importance of continuous use of renewable energy power generation facilities.

CSIF aims to increase the value of existing facilities by “re-powering” and installing “storage battery facilities” to make best use of our assets and support the profitability in the Post-FIT phase.

Debt Profile

Issuer’s ratings

CSIF is the only TSE-listed infrastructure fund rated by both of JCR and R&I as of June 30, 2025.

JCR A+ (Stable) (As of October 31, 2025)
R&I A (Stable) (As of October 7, 2025)

Key financial indicators

CSIF intends to build a stable and strong financial base by managing interest rate using IRS in flexible manner and keeping an appropriate LTV level.

Average borrowing Interest

As of December 31, 2025
1.0572 %
# of financial institutions

As of December 31, 2025
24
DSCR

As of December 31, 2025
1.79 x

LTV

As of June 30, 2025
54.21 %

As of December 31, 2025
55.01 %
Fixed interest rate ratio

As of June 30, 2025
80.2 %

As of December 31, 2025
80.2 %

Overview of Interest-bearing Debts (As of December 31, 2025)

Category	Type	Initial amount (yen millions)	Outstanding (yen millions)	Interest rate	Interest rate type	Drawdown date	Maturity
Loan	Long term	15,700	8,981	Base rate plus 0.45% (fixed at 0.845% upon executing interest rate swap)	Floating (Fixed)	October 31, 2017	10 years from drawdown date JCR Green Finance Evaluation
	Long term	8,000	4,843	Base rate plus 0.45% (fixed at 1.042% upon executing interest rate swap)	Floating (Fixed)	September 6, 2018	10 years from drawdown date
	Long term	17,000	12,188	Base rate plus 0.45% (fixed at 0.8199% upon executing interest rate swap)	Floating (Fixed)	March 8, 2021	10 years from drawdown date JCR Green Finance Evaluation
	Long term	5,800	4,963	Base rate plus 0.45% (fixed at 1.14759% upon executing interest rate swap)	Floating (Fixed)	July 19, 2023	10 years from drawdown date JCR Green Finance Evaluation
	Long term	5,800	4,963	Base rate plus 0.45%	Floating	July 19, 2023	10 years from drawdown date JCR Green Finance Evaluation
	Long term	4,300	3,987	Base rate plus 0.45%	Floating	January 29, 2025	5 years from drawdown date JCR Green Finance Evaluation
Bond	Long term	3,800	3,800	0.80%	Fixed	January 26, 2021	5 years from issuance date JCR Green Bond Evaluation
Bond	Long term	1,400	1,400	1.573%	Fixed	October 24, 2024	5 years from issuance date JCR Green Bond Evaluation
Total / Average		－	45,127	－	－	－	－

CSIF’s Mid- to Long-term Strategy/Renewable Energy Market Environment

CSIF set the Medium-Term Management Plan “VISION 2030” in order to enhance unitholders’ value and lay the foundation for the continued growth in the Post-FIT Phase.