Canadian Solar Inc. has signed a financing agreement pursuant to which Deutsche Bank has agreed to provide C$139 million in nonrecourse short-term construction financing to Canadian Solar for the construction of solar power projects in Ontario.
The loans are expected to be repaid with the proceeds of the sale of the respective financed projects. The loan facility is intended to support the simultaneous construction of five utility-scale solar power plants totaling 49 MW.
Developed by Canadian Solar, the projects are expected to be built and connected through 2012 and 2013. All of the projects have been awarded a 20-year power purchase contract by the Ontario Power Authority under the Ontario's feed-in-tariff program. They will be acquired by TransCanada Corp. in accordance with a previously announced sales agreement.