Canadian Solar Secures $50Mn Loan For International Project Pipeline

Canadian Solar, one of the world’s largest solar power companies, recently announced the closing of a US$50 million term loan from Credit Suisse AG, Singapore Branch.

The company issued in a statement that it intends to deploy the term loan to support the development of international solar project pipeline and for general corporate purposes. The U.S. dollar-denominated term loan is expected to mature in April 2021. Credit Suisse further provided Canadian Solar with a cross-currency interest rate swap to hedge its cross-currency interest rate liabilities relating to the term loan.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar Inc. commented, “We are pleased with this strong demonstration of capital support from Credit Suisse. This term loan provides us with the financial flexibility to invest in growth and further improve our cost of capital.”

In April, the company announced that its wholly-owned subsidiary Canadian Solar Projects K.K. had expanded and renewed its credit facility with a syndicate of four finance leasing institutions led by Sumitomo Mitsui Finance and Leasing Company, Limited, a member of Sumitomo Mitsui Financial Group and one of Japan’s largest leasing institutions with global presence.

The facility has been increased from JPY 4.0 billion (US $36 million) to JPY 5.35 billion (US $48 million) and will mature in March 2022. The Company intends to utilise the facility to develop more high-quality solar power projects in Japan.

Recently, the manufacturer announced the signing of an agreement for the sale of its 80% interest in a 482.6 MW portfolio of contracted solar projects in Brazil to Nebras Power Investment Management B.V., a Dutch affiliate of Nebras Q.P.S.C.

The projects for which the company has sold 80% stakes are presently in advanced stages of development with construction expected to begin in 2019. Canadian Solar will supply to the projects the high-efficiency bi-facial modules, a bulk of which will be manufactured in the company’s facility in Brazil, the leading supplier of high-quality modules for the growing solar market in the country.