Canadian Solar receives CAD 71.6 million construction loan from Deutsche Bank
Canadian Solar, one of the world‘s largest solar power companies, and Deutsche Bank have signed a financing agreement for two solar power projects in Ontario, Canada. The Bank will provide CAD 71.6 million (USD 58 milion) in non-recourse, short term construction financing to the company.
The two power plants, both 10 MW AC each, have been awarded a 20-year power purchase contract by the Independent Electricity System Operator (IESO) under Ontario’s Feed-in-Tariff (FIT) Program. The loan, which has a one-year term after construction is complete, is expected to be repaid with the proceeds of the sales of the respective financed projects. In addition, the projects may be sold to Canadian Solar’s upcoming YieldCo.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented: "This is the fourth construction loan package that Canadian Solar has signed with Deutsche Bank, and we value and respect our long-standing relationship with this reputable financial institution. The addition of these two projects underscores not only our successful collaboration with Deutsche Bank, but also our contribution to expanding the use of clean solar energy in Canada."
Deutsche Bank is one of the largest financiers of renewable energy worldwide. In 2014, the bank provided around EUR 1 billion in capital which helped finance projects of value more than EUR 4.3 billion and with a total capacity of approximately 1.8GW across Europe, North and South America and Asia.
“The addition of these two projects underscores not only our successful collaboration with Deutsche Bank, but also our contribution to expanding the use of clean solar energy in Canada.”
Financing renewable energy
EUR 1 billion
were provided for renewable energy projects across Europe, North and South America and Asia by Deutsche Bank in 2014.