The International Finance Corporation (IFC) has entered into an agreement with Chinese Tier-1 solar power company Canadian Solar to deliver a finance package worth $70 million to aid the companys overseas expansion plans.
The terms of the deal include a $60 million loan and a $10 million subscription in Canadian Solar common shares.
Canadian Solar is looking to build manufacturing capacity in Asia and Latin America namely Vietnam and Brazil and will utilize these funds to construct fabs in these countries, as well as other emerging markets, the company said.
"We are delighted to secure support from IFC. This partnership is another milestone that enhances our leading position in the global solar power industry," said Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. "With IFC's commitment, we are able to expand our production capacity to meet the increasing demand for solar energy worldwide. We look forward to continuing our cooperation with IFC to accelerate the adoption of solar energy around the world, especially in developing economies, and to mitigate climate change."
IFCs director of manufacturing, agribusiness and services Alzbeta Klein said that the solar industry is at an "exciting juncture", where rapid cost declines make the technology a scalable and feasible option for emerging markets. "IFC views this transaction as a first step in a long-term partnership with Canadian Solar, a global leader in the industry, and we look forward to collaborating on business models that will enable low-carbon energy access," Klein added.