Canadian Solar strikes $70mn deal over Vietnam facility
Canadian Solar strikes $70mn deal over Vietnam facility
Canadian Solar Inc. has closed a deal with a financial company on a financing package of up to US$70 million in loans and equity investment, which will be earmarked for its production facility in Vietnam.
The credit package, to be provided by International Finance Corp. (IFC), includes loans worth up to $60 million and subscription of up to $10 million in common shares of the solar company, Canadian Solar said in a press release on January 28.
Proceeds of the investment and financing package will be used to fund Canadian Solar’s module production plant in Vietnam and the expansion of solar cell or module production capacities in other emerging markets, according to the announcement.
Canadian Solar, however, did not give details about its Vietnam project.
The Canadian company said the partnership with IFC underscores its commitment to expanding in Asia and Latin America, as well as operating in compliance with the financial firm’s environmental and social performance standards.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in emerging markets.
Dr. Shawn Qu, chairman and CEO of Canadian Solar, said the partnership is another milestone that enhances the company’s leading position in the global solar power industry, which also enables it to “expand [its] production capacity to meet the increasing demand for solar energy worldwide.”
“We look forward to continuing our cooperation with IFC to accelerate the adoption of solar energy around the world, especially in developing economies, and to mitigate climate change,” he said.
In the meantime, IFC views the transaction as the first step in a long-term partnership with Canadian Solar, at a time when rapid cost declines have made the solar industry a scalable option for emerging markets.
“We look forward to collaborating on business models that will enable low-carbon energy access,” said Alzbeta Klein, director of IFC Manufacturing, Agribusiness and Services.
Founded in 2001 in Canada, Canadian Solar, one of the world’s largest and foremost solar power companies, is a leading manufacturer of solar photovoltaic modules and a provider of solar energy solutions.
The Guelph-based company has a geographically diversified pipeline of utility-scale power projects, with more than 12GW of premium quality modules having been successfully deployed in over 70 countries around the world in the past 14 years.
