Canadian Solar Inc. CSIQ revealed that it has received a $58 million (C$71.6 million) non-recourse and short-term loan from Deutsche Bank AG DB for the construction of two solar power projects in Ontario. This is the fourth construction loan that the Ontario, Canada-based manufacturer of solar photovoltaic modules has received from the German bank.
The two solar plants have a capacity of 10 megawatt (MW) AC each. Independent Electricity System Operator has signed a 20-year power purchase agreement with Canadian Solar for the plants under Ontario’s Feed-in-Tariff (“FIT”) Program.
Last month, Canadian Solar also secured a $44.4 million (C$53.5 million), non-recourse, construction plus term-financing loan from New York branches of Natixis, Rabobank Nederland and NordLB.
Canadian Solar will utilize the loan to develop a 10 MW utility-scale solar power project, known as “Illumination”, in the town of Scugog, Ontario. This solar project is one of four projects with a total capacity of 40 MW that the company is developing for the Dutch Infrastructure Fund Infra 3 RE Canada Limited.
The 40 MW project portfolio includes Glenarm, Illumination, Beamlight and GoldLight solar park projects, for which the company is acting as a turnkey engineering, procurement and construction contractor.
Canadian Solar, the Zacks Rank#3(Hold) stock, caters to a geographically diverse customer base spread across key markets in the U.S., Canada and Europe, as well as emerging markets in South Korea and Brazil.
The company has a strong pipeline of projects and carries out various acquisitions and strategies to further consolidate its position. In the first quarter of 2015, Canadian Solar’s late-stage, utility-scale solar projects increased by roughly 1.0 gigawatt (GW) to 2.5 GW. For the second quarter of the year, the company expects total module shipments in the range of 950 MW to 1000 MW.
Canadian Solar faces intense competition from other solar energy providers such as SolarCity Corp. SCTY, First Solar, Inc. FSLR.
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