Canadian Solar Subsidiary Recurrent Energy Gets $50 Million LoC from Natixis

Canadian Solar today announced that its wholly-owned subsidiary Recurrent Energy, LLC has secured a $50 million letter of credit facility from global financial services company Natixis.

The US-based firm Recurrent Energy, which is one of the leading utility-scale solar and energy storage project developer has secured a $50 million LoC facility from multinational financial services firm, Natixis.

The $50 million LoC facility is to support the development of the Company’s utility-scale solar projects across the U.S. and Canada. Recurrent Energy will use this LoC facility primarily to support security obligations under power purchase agreements and interconnection agreements for development-stage projects. The facility size may be increased with participation from other banking partners that are committed to the North American renewable energy market.

Recurrent Energy has approximately 5 GW of solar and storage projects in development in the U.S.

“The closing of this innovative LoC facility with long-time partner Natixis reflects strong market confidence in Canadian Solar‘s high quality solar assets in the U.S. and Canada,” said Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar. “We are very happy to again join forces with Natixis, a global leader in renewable energy financing, as we continue to expand our North American solar portfolio.”

The closing of this LC facility marks Canadian Solar’s fifth successful transaction with Natixis. Canadian Solar has successfully delivered over 32 GW of solar photovoltaic modules to customers in over 150 countries. It has been acquiring utility-scale projects and signing module supply and EPC deals at a rapid pace in recent months. However, Fourth-quarter results weren’t particularly startling for Canadian Solar. Module shipments were 1.95 GW versus guidance of 1.9 GW to 1.95 GW. Revenue was $901 million and earnings were $99.5 million. Despite this record year, investors seem unimpressed with Canadian Solar’s outlook for 2019. The company expects total solar module shipments to be in the range of approximately 7.4 GW to 7.8 GW. Full-year revenue is expected to be in the range of $3.5 billion to $3.8 billion, reflecting the impact of an expected lower module Average Selling Price (ASP) and lower revenue from solar project sales.