Canadian Solar secures additional BRL487m financing for solar power projects in Brazil


Canadian Solar yesterday announced it has secured BRL487 million (US$117 million) non-recourse project financing from Banco do Nordeste do Brasil S.A. (BNB) for its Francisco Sa and Jaiba solar power projects. Since the beginning of 2019, Canadian Solar has secured BRL782 million insolar project financing from BNB.

The 114.3 MWp Francisco Sa and 112.4 MWp Jaiba projects will be funded over 23 years across the construction and operation phases of the projects. The inflation-linked debt – tied to the National Consumer Price Index – will provide improved capital and resource alignment with the Brazilian economy.

Shawn Qu, chairman and CEO of Canadian Solar, said: “We are delighted to close our third and fourth consecutive project financing [arrangements] with BNB. These new financing [deals] affirm the public sector’s support to empower social demand for clean and affordable solar energy infrastructure in Brazil. As a financier to the fastest growing renewables market in Latin America, BNB’s continuing participation promotes our confidence in the long-term potential of Brazil’s green energy sector.”

The funding from BNB across multiple projects will support Canadian Solar’s plan to build one of the largest high-efficiency bifacial solar power plants in Latin America. These projects will be powered by Canadian Solar high-efficiency modules, including BiHiKu modules.

Canadian Solar won the Francisco Sa and Jaiba solar projects in Brazil’s A-4 federal auction in April 2018, with 20-year, inflation-adjusted PPAs [power purchase agreements] awarded at a base price of BRL118/MWh (0.0283/kWh) with the Brazilian Electric Power Commercialization Chamber. The projects are expected to start construction in the fourth quarter and reach commercial operation in 2021.