Canadian Solar reveals financing details for 200 MW Tranquillity solar project

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On September 1, it was announced that Southern Power, subsidiary of Southern Company will acquire an around 51% stake in the 200 MW solar PV project, while Canadian Solar will retain its 49% stake.

It was also said that Canadian Solar had already financed the project. The financial details were not disclosed. However, in a statement released today, Canadian Solar says its subsidiary, Recurrent Energy has received $337 million via a construction and bank-leveraged loan facility from a syndicate of six banks, comprising NORD/LB, which is acting as the Coordinating Lead Arranger; and Rabobank, Santander, KeyBanc, CIT, and CIBC.

The 200 MW Tranquillity project is currently under construction in Fresno County, California. Commercial operation is scheduled to be reached in Q4 2016, with Signal Energy Constructors undertaking EPC services. The generated energy will be sold to Southern California Edison under a 15 year PPA.

"At a time when the U.S. utility-scale solar industry is experiencing record growth, top tier financiers find high-quality solar projects to be an attractive asset class," commented Shawn Qu, Chairman and CEO of Canadian Solar. "We are proud to partner with this leading group of lenders on the Tranquillity project which underscores our broader team’s ability to consistently deliver bankable solar projects."

Yesterday, GTM Research and the Solar Energy Industries Association (SEIA) reported that 1.4 GW of solar PV was installed in the U.S. in Q2. Meanwhile, a record 5.3 GW of projects are currently under construction and 16.7 GW of projects are said to have signed PPA contracts.