Canadian Solar Reaches Financial Close on Tastiota Project


Canadian Solar Inc., a manufacturer of solar photovoltaic modules and provider of solar energy solutions, says it has reached the financial close of its 126 MWp Tastiota project in Sonora, Mexico. 

The non-recourse financing package, arranged by Canadian Solar, was provided by Sumitomo Mitsui Banking Corp. (SMBC). SMBC acted as the sole structuring bank and mandated lead arranger in the transaction.

The Tastiota financing package consists of a $67 million senior loan, $15 million letter of credit facility and a $12 million VAT facility covering the construction and operational phase of the project.

Following the sale in November 2019 of the 49% interest in a 370 MWp portfolio of Mexican projects to Korea Electric Power Corp. (KEPCO), South Korea’s largest electric utility, and Sprott Korea, a fund manager, these parties have entered into an agreement to acquire Canadian Solar’s remaining interest in the projects following their commercial operation date.

“The closing of this non-recourse project finance during these extraordinary times is a strong sign of financial markets’ confidence in Canadian Solar’s vision and ability to deliver solar energy in Mexico,” says Dr. Shawn Qu, chairman and CEO of Canadian Solar. “I am proud of our teams’ accomplishments in contracting 436 MWp of PPAs in Mexico, which is part of a broader 2.9 GWp portfolio of project backlog across Latin America. We remain focused on serving this market and maintaining our valued relationships with energy regulators, investors, customers, suppliers and business counterparties, as well as supporting continued job creation across the renewable energy sector.”

The Tastiota project was awarded a power purchase agreement (PPA) during Mexico’s third energy auction. Electricity generated by the project will be sold to the Federal Electricity Commission (CFE), under a 15-year PPA for energy and capacity, and 20-year PPA for clean energy certificates. The 126 MWp solar power plant will utilize high-efficiency BiHiKu modules supplied by Canadian Solar and is expected to begin operations at the end of the year.

Photo: A Canadian Solar-supplied Chinese photovoltaic project

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