Canadian Solar, the north American leader in solar energy developments announced today that it has closed a BRL 500 million financing facility with Brazilian banks BTG Pactual and Itaú BBA; the financing facility is equivalent to USD$100 million.
Firstly, Canadian Solar will use the funds to advance its solar energy portfolio in Brazil; where the company has established a leadership position in the solar energy market.
Secondly, according to the statement, the facility will fund around 70% of Canadian Solar’s equity contributions in a subset of its Brazilian project portfolio; which is a unique structure in the local market.
Thirdly, the banks BTG Pactual and Itaú BBA, two top leaders in the investing and commercial sector in Brazil are also financial advisors to the Canadian Solar Brazilian portfolio.
Moreover, within Brazil, federal and regional, Canadian Solar has developed and contracted private PPA auctions for nearly 3 GWp of solar projects. 480 MWp of this are currently in operation and have been sold to third parties.
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Canadian Solar with the biggest solar energy portfolio in the market
In addition, 483 MWp are under construction (with 80% interest already sold), and an additional 2 GWp are under development with PPA contracts.
Consequently, Canadian Solar’s portfolio in Brazil is the largest in the market; therefore, the financing facility will support the plan to establish a publicly listed vehicle with operating projects; depending on market conditions, while providing flexibility on the timing of monetizing projects.
About the relevance of the financing, Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, said. “We are grateful and pleased to collaborate again with BTG Pactual; and also, Itaú BBA to finance the development and construction of more solar assets in Brazil.”
He also remarked. “With this facility, we can further leverage our equity contribution to build projects in Brazil; and monetize them post-COD at attractive valuation, while maintaining the option to retain meaningful long-term ownership.”
Finally, he concluded. “We look forward to executing on our large backlog; and also our pipeline of solar projects in Brazil and supporting the country’s renewable power and energy security goals.”
