Canadian Solar Secures A Big Credit Facility and Term Loan

Canadian Solar has announced two major infusions of financing from global banking institutions.

The first was a financing agreement pursuant to which Royal Bank ofScotland  agreed to provide a GBP19.2 million ($29.0 million) term loan to Canadian Solar for the construction of seven solar power plants with a total installed capacity of 38MWp in the United Kingdom. 

“We are pleased to announce the term loan facility with RBS that will support the construction of seven solar systems and expand our fleet of solar plants in the UK by 38 MWp, to 78 MWp,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “We are also pleased with the execution of our Energy business plan across all of our key markets as we continue to successfully develop, finance and build high quality solar energy assets in low risk geographies.”

The second was that it had signed a financing agreement pursuant to which Deutsche Bank AG, Tokyo Branch agreed to provide a JPY12.0 billion ($97.2 million) senior non-recourse project finance credit facility to Canadian Solar for the construction of the Company’s Kumamoto Mashiki solar power plant in Japan.

The 48 MWp Kumamoto Mashiki solar power plant is forecasted to reach commercial operation in 2017 and will sell electricity to Kyushu Electric Power Co., Inc. under a 20 year feed-in-tariff contract at the rate of JPY36.0 ($0.30) per kWh.

“We are pleased to announce another project construction credit facility with Deutsche Bank that allows us to continue the development of our pipeline of quality solar projects in low risk geographies that we expect will create lasting value for our shareholders,” said Dr.Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “We are also pleased that our efforts in Japan are gaining traction, our pipeline is maturing, and the construction of several valuable projects is ramping up, which positions us well to deliver solid results in the quarters ahead.”

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This post was prepared by Solar Thermal Magazine staff.

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