Canadian Solar secures funds for 126-MWp project in Mexico

Solar park in Mexico. Author: Presidencia de la Rep├║blica Mexicana. License: Creative Commons, Attribution 2.0 Generic.

October 7 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) has closed the financing for the 126-MWp Tastiota solar project located in the Mexican state of Sonora, the company announced today.

The solar power company has arranged a non-recourse financing package with Japan's Sumitomo Mitsui Banking Corporation (SMBC), securing a USD-67-million (EUR 57m) senior loan, a USD-15-million letter of credit facility, and a USD-12-million value-added-tax (VAT) facility covering construction and operation.

The Tastiota solar park is expected to start commercial operations by the end of the year.

As a winning project in Mexico's third energy auction, Tastiota will operate under a 15-year power purchase agreement (PPA) with state-owned utility CFE for 15 years. It is also entitled to sell clean energy certificates for 20 years.

Tastiota is included in Canadian Solar's agreement to sell 49% interest in Mexican projects totalling 370 MWp to Korea Electric Power Co (KRX:015760) and fund manager Sprott Korea. 

Under the terms of the deal, the Korean companies will be able to acquire Canadian Solar's remaining interest in the portfolio once the projects commence commercial operation.

(USD 1.0 = EUR 0.851)

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