Canadian Solar has achieved financial close on a $69 million non-recourse project financing for the 67.8 MWp Aguascalientes solar power project in Mexico.
Bancomext, a Mexican Development Bank and Export Credit Agency, and Banco Sabadell, a commercial banking group in Spain, provided the $69.0 million non-recourse financing package to Canadian Solar.
The financing package consists of $53.2 million long-term loan, $5.6 million letter of credit facility, and $10.2 million Value Added Tax (VAT) short-term loan.
Canadian Solar will use the long-term loan to repay $45 million construction loan that was previously provided by Natixis.
The 67.8 MWp Aguascalientes solar power project in Mexico will sell electricity to Comision Federal de Electricidad, under a 15-year PPA for energy and capacity, and 20-year for Clean Energy Certificates.
Canadian Solar will be supplying over 200,000 CS6U-P Max Power modules for the solar power plant that will begin its commercial operations before the end of December 2018.
Mexico aims to reach 35 percent renewable energy by 2024. “We already have a 436 MWp late-stage pipeline with contracted PPAs in Mexico,” said Shawn Qu, chairman and chief executive officer of Canadian Solar.