2021-08-02CANADIAN SOLAR RAISES US$100 MILLION FROM BTG PACTUAL AND ITAÚ BBA TO SUPPORT EXECUTION OF BRAZIL PROJECT PORTFOLIO
GUELPH, ON, July 27, 2021 /PRNewswire/ — Canadian Solar Inc. (the “Company”, or “Canadian Solar”) (NASDAQ: CSIQ) announced today that it has closed a BRL 500 million (approximately US$100 million) financing facility with Brazilian banks BTG Pactual and Itaú BBA.
Canadian Solar will use the financing facility for the development and construction of solar projects in Brazil, where the Company has established a leadership position in the solar energy market. The facility will fund up to 70% of Canadian Solar’s equity contributions in a subset of its Brazilian project portfolio, a unique structure in the local market. BTG Pactual and Itaú BBA, two leading investment and commercial banks in Brazil and long-term Canadian Solar partners in Latin America, are also financial advisors to the Company’s Brazilian portfolio.
Canadian Solar has developed and contracted in federal, regional and private PPA auctions nearly 3 GWp of solar projects in Brazil. Of this, 480 MWp are in operation and have been sold to third parties, 483 MWp are under construction (with 80% interest already sold), and an additional 2 GWp are under development with PPA contracts. Canadian Solar’s portfolio in Brazil is the largest in the market and the financing facility will support the plan to establish a publicly listed vehicle (FIP-IE) with operating projects, depending on market conditions, while providing flexibility on the timing of monetizing projects.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented, “We are grateful and pleased to collaborate again with BTG Pactual and Itaú BBA to finance the development and construction of more solar assets in Brazil. With this facility, we can further leverage our equity contribution to build projects in Brazil and monetize them post-COD at attractive valuation, while maintaining the option to retain meaningful long-term ownership. We look forward to executing on our large backlog and pipeline of solar projects in Brazil and supporting the country’s renewable power and energy security goals.”
BTG Pactual (BPAC11) is the largest investment bank in Latin America, operating in Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management. Since inception in 1983, the Bank has been operating based on a meritocratic partnership culture, focused on clients, excellence and a long-term vision. It has cemented its status as one of the most innovative sector players and has won numerous national and international awards. Currently, it has close to 4,000 employees in offices across Brazil, Chile, Argentina, Colombia, Peru, Mexico, the U.S., Portugal and England. For more information go to http://www.btgpactual.com.
Itau BBA is one of the leading investment banks in Brazil with services ranging from financial advisory, local and international capital markets, mergers and acquisitions, derivatives and credit facilities. Itaú BBA is listed on the B3/São Paulo stock exchange and has BRL 994 billion assets under management and a BRL 260 billion credit portfolio in Brazil, as of March 2021. Itaú BBA is part of Itaú Unibanco Group, which is the largest private bank in Brazil, the largest financial institution in Latin America and one of the largest in the world. For the 16th consecutive year, Itaú Unibanco was considered the most valuable brand in Brazil according to the Interbrand Ranking.