The one year tenor loan will be used to finance the acquisition of four photovoltaic projects in Ontario from SunEdison.
On December 28, Canadian Solar completed a purchase and sale transaction with SunEdison, whereby Canadian Solar Solutions Inc. acquired a majority interest in two utility-scale photovoltaic plants totaling around 24 MW DC. The company said at the time that subject to certain contractual agreements, it may also purchase a further two plants worth 22.5 MW.
A spokesperson confirmed today that the loan will cover the four plants, worth $38 million. There is also the option to purchase a fifth plant at a later date.
All five projects are said to have secured 20 year PPAs with the Ontario Power Authority. Meanwhile, construction on the two projects worth 24 MW collectively is expected to begin early this year, and be completed by late 2013. The remaining three projects are said to be in the advanced permitting stages, and are hoped to be operational between late 2013 and early 2014.
"The completion of the transaction also brings a settlement to litigation proceedings between Canadian Solar and SunEdison commenced in the Ontario courts in October 2011," said Canadian Solar in the December statement.