The global development and power services business unit of Canadian Solar, Recurrent Energy has secured a new financing facility of up to €110 million ($120 million) as green loan to invest in its growth strategy.
The green loan has come in as a €55 million ($60 million) term loan and a €55 million revolving credit facility from a consortium of international banks, led by Investec Bank Plc.
Investec Energy and Infrastructure Finance UK's Antonio Cravo said it has delivered a 'tailored financing solution' to enable Recurrent achieve its strategic ambitions and continue the transition to a PP model.
Recurrent says it plans to use its multi-currency facility to support its transition to become an independent power producer (IPP) and accelerate its growth.
The proceeds will also be used to execute its global solar PV and energy storage project pipeline. It counts 27 GW of solar PV and 55 GWh of energy storage pipeline in its portfolio as of January 31, 2024.
"This facility marks a significant step towards our goal of establishing a leading global platform for clean, reliable, and affordable energy solutions," said Recurrent Energy CEO Ismael Guerrero.
Canadian Solar's largest institutional investor BlackRock picked up a 20% stake in Recurrent in January 2024 and announced a $500 million preferred equity investment. The subsidiary followed up with a $160 million project financing for its 127 MW DC solar plant in Louisiana in February 2024 (see Recurrent Energy Announces CPPA & Project Finance Increase).
Recurrent's parent Canadian Solar reported record revenues of $7.6 billion for FY2023 (see Canadian Solar Beats Q4/2023 Solar Module Shipment Guidance).