Canadian Solar Secures Major Financing for Global Expansion

Canadian Solar Inc. is poised for significant global growth following a series of substantial financing deals and investments. The renewable energy giant has secured hundreds of millions of dollars, bolstering its expansion plans in the United States and internationally, particularly in solar energy development and manufacturing.

Key Takeaways

• Canadian Solar's subsidiary, Recurrent Energy, has secured a $500 million investment commitment from BlackRock.

• The company is investing $800 million in a new solar cell facility at River Ridge.

• Canadian Solar has also completed a $200 million notes issuance.

BlackRock Investment Fuels Global Solar and Storage Development

Recurrent Energy, a key subsidiary of Canadian Solar and a major player in utility-scale solar and energy storage project development, has secured a $500 million preferred equity investment commitment from BlackRock. This significant capital infusion will support Recurrent Energy's operations across numerous countries, including the U.S., Canada, Spain, Italy, the U.K., France, Germany, South Africa, Brazil, Chile, Colombia, Australia, South Korea, and Taiwan. The investment excludes certain project development businesses in Japan, China, and specific assets in Latin America and Taiwan.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, expressed enthusiasm about the partnership with BlackRock, noting its role as Canadian Solar's largest institutional investor. He highlighted that the capital will enable the scaling of the Recurrent Energy platform to meet the escalating global demand for clean energy and energy storage solutions. David Giordano, BlackRock's Global Head of Climate Infrastructure, stated that the investment aligns with their strategy of backing leading renewable power generation assets and transition-enabling infrastructure, marking the first investment from BlackRock's fourth Climate Infrastructure fund.

Significant Investment in U.S. Manufacturing

In a separate development, Canadian Solar is set to invest approximately $800 million in a new solar cell manufacturing facility at River Ridge in Indiana, United States. This investment underscores the company's commitment to expanding its manufacturing capabilities within the U.S. and contributing to the domestic renewable energy supply chain.

Convertible Notes Issuance for Further Capitalization

Further strengthening its financial position, Canadian Solar recently completed a definitive agreement for a $200 million convertible notes issuance. The company partnered with PAG, a prominent investment firm in the Asia-Pacific region, which will subscribe to the aggregate principal amount of these notes. This issuance provides additional capital to support Canadian Solar's ongoing strategic initiatives and global expansion efforts.

The series of financing and investment deals positions Canadian Solar for robust growth in the rapidly expanding renewable energy sector, reinforcing its role as a leading global provider of solar power and energy storage solutions.

Sources

• Canadian Solar to invest $800 million in new solar cell facility at River Ridge, The Business Journals.

• Canadian Solar subsidiary secures $500 million investment from BlackRock, Canadian Lawyer Magazine.

• Latham Advises Canadian Solar on US200 Million Notes Issuance, Latham & Watkins LLP.

• Canadian Solar wins $500 million investment from BlackRock, Financial Post.