Canadian Solar Inc. (NASDAQ: CSIQ) has announced that it has signed a financing agreement pursuant to which Deutsche Bank has agreed to provide $139 million in non-recourse, short-term construction financing to Canadian Solar for the construction of solar power projects in Ontario. The loans are expected to be repaid with the proceeds of the sale of the respective financed projects.
The loan facility is intended to support the simultaneous construction of five utility-scale solar power plants totaling 49 MW AC. Developed by Canadian Solar, the projects are expected to be built and connected through 2012 and 2013. All of the projects have been awarded a 20-year power purchase contract by the Ontario Power Authority under Ontario's Feed- In-Tariff Program. As a part of Canadian Solar's turnkey solar solutions, these projects will be acquired by TransCanada Corp. in accordance with the sales agreement announced in December of 2011.
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