Canadian Solar Secures $48 Mn Credit Facility For Development of Solar Projects in Japan

The Company intends to utilise the facility to develop more high-quality solar power projects in Japan.

Canadian Solar, one of the world’s largest solar power companies, has announced that its wholly-owned subsidiary Canadian Solar Projects K.K. has 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.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar Inc. said, “Since 2018, as a testament to Canadian Solar’s deep operating experience and credit strength, we have successfully raised JPY 16 billion (US$ 145 million) of flexible capital sources at favourable rates from our relationship Japanese lenders. We value the ongoing support of SMFL and our syndicate group of finance leasing institutions.”

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. 

With the completion of 80% interest sale of the 482.6 MW Brazilian portfolio to Nebras Power, Canadian Solar will have successfully sold close to 1 GW of high-quality solar projects in Brazil. The agreement with Nebras provides Canadian Solar with the retention of the remaining 20% interest in the portfolio.