Canadian Solar Inc., the world’s third-largest maker of solar panels, received a $93 million CAD loan from state-owned China Development Bank Corp. as it expands in North America. The five-year facility will be used to part-finance the recent acquisition of a stake in 16 photovoltaic projects in Ontario from developer SkyPower Ltd.
The loan is its first from this bank, company data show. Canadian Solar’s expansion into project development enables it to increase control over sales of its products as panel prices weaken. It also gives the company access to Ontario’s feed-in tariff program, which offers premium rates for electricity generated from renewable sources.
Canadian Solar, which is based in the province of Ontario and has production facilities in China, had about $88 million CAD in long- term debt from Agricultural Bank of China Ltd. (601288), Bank of Communications Co. and Export-Import Bank of China at the end of last year, according to the company’s latest results.
China Development Bank has offered $47.3 billion USD since 2010 to support the country’s wind and solar manufacturers, a credit line that’s only been partially tapped, according to London- based researcher Bloomberg New Energy Finance.
Under Canadian Solar’s April accord with SkyPower, it agreed to pay $187 million CAD for a majority interest in 190 to 200 megawatts of permitted PV projects. Its largest global competitors are Suntech Power Holdings Co. and First Solar Inc.
Sources: Reuters, Bloomberg New Energy Finance, Canadian Solar Inc. Press Release
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