Canadian Solar Manages To Achieve Required Funds From Lenders

Canadian Solar has achieved $180 million two-year senior secured term loan from Credit Suisse.

Canadian Solar has managed to achieve a loan worth $180.0 million through a final tranche of $80 million, thanks to a two-year secured loan by a Singaporean financial institution, Credit Suisse AG. The renewable energy maker made the announcement on Tuesday; this recent finance completes the total of $180 million.

Canadian Solar is planning to issue lenders with warrant enabling them to buy almost 940,171 of common shares at a cost of $28.08 each, but these warrants are expected to expire in the span of two years from December 10, 2017.

The chairman and chief executive office of the giant solar power company, Dr. Shawn Qu, commented regarding the development, “We are pleased with the positive outcome of this transaction and we appreciate the conference of the lenders in our business. The buildout of our high value solar project pipeline in the U.S. as well as other markets is proceeding according to plan, positioning us well to create lasting value for our shareholders in the quarters ahead.”

This recent action is going to be highly beneficial for the shareholders while other organizations in the business are also expected to benefit from this. Mainly because the solar industry is growing rapidly due to the climate change awareness worldwide, the population is switching to renewable sources of energy and electricity. Many countries are building wind and solar farms so that more and more houses can be provided with renewable means of energy.

In other news, the giant energy maker made another announcement of selling off the 10Megwatts AC Illumination LP solar plant to DIF infrastructure III. The plant, situated in Ontario, was worth $48.4 million and has 47,448 CS6X-300/310 PV modules. It was completed and was operational in 2013 on November 13. The energy produced from this plant will be sold through a 20-year contract of Independent Electricity System operator feed-in-tariff. It is going to produce 17,892 megawatts every year.

This latest plan of Canadian Solar is shockingly good for the environment as the energy that will be used is going to be like taking away 50,000 cars off the road that cause pollution in the climate. This makes it the third transaction between the two businesses and the partnership is expected to continue in the long-run. Not just that these companies will profit from the partnership and the sale of the plant, but it will protect the environment too.

Canadian stock closed at $25.40 after going green by 3.08% on December 16.