Bank syndicate funds $44 million construction plus term loan for Canadian Solar
Written By: Tracy Dawson Roses
May 18, 2015
On May 18, 2015 it was announced that Natixis, New York Branch/Norddeutsche Landesbank Gironzentrale, New York Branch/Cooperative Centrale Raiffeisen-Boerenleenbank B.A./”Rabobank Nederland,” New York Branch will provide Canadian Solar Inc. with up to C$53.5 Million (USD$44.4 Million) in non-recourse, construction plus term financing.
The loan facility will finance the 10 MW utility-scale solar power project, “Illumination,” located in the town of Scugog, Ontario, which is being acquired by DIF Infra 3 RE Canada Limited.
Developed by Canadian Solar, the solar power plant is expected to be in commercial operation by the fourth quarter of 2015. The project has been awarded a 20-year power purchase contract (“FIT”) by the Ontario Power Authority under Ontario’s Feed-In-Tariff program.
In another recent development, Canadian Solar Inc. on May 7 announced that it has signed a US$250 million loan agreement with China Minsheng Bank. The loan facility has a three-year maturity and will be used to partially finance the acquisition of Recurrent Energy LLC and the construction of the utility-scale solar projects in USA.
Dr. Qu commented:
“We are very delighted to receive this loan facility from China Minsheng Bank, a large commercial bank in China. Our ability to get support from both international and Chinese financial institutions is a testament to Canadian Solar’s position as a global leader in the utility-scale solar energy business.”