Canadian Solar closes financing of 68 MW solar PV project in Mexico

Canadian Solar Inc., announced it has achieved financial close on a US$69.0 million non-recourse project financing for the 67.8 MWp Aguascalientes solar power project in Mexico.  

Arranged by Canadian Solar, the CAD69.0 million (US$51.5 million) non-recourse financing package was provided by Banco Nacional de Comercio Exterior, S.N.C. ("Bancomext") and Banco Sabadell. Bancomext is a Mexican Development Bank and Export Credit Agency, whereas Banco Sabadell is a commercial banking group headquartered in Spain.

The financing package consists of a US$53.2 millionlong-term loan, a US$5.6 million letter of credit facility, and a US$10.2 million Value Added Tax (VAT) short-term loan. Proceeds from the long-term loan will be used to repay a US$45 million construction loan that was previously provided by Natixis.

The Aguascalientes project was awarded a Power Purchase Agreement (PPA) during the 2016 inaugural Mexico energy auction. Electricity generated by the plant will be sold to Comisión Federal de Electricidad, under a 15-year PPA for energy and capacity, and 20-year for Clean Energy Certificates. 

The solar project will utilize over 200,000 high-efficiency CS6U-P poly modules supplied by Canadian Solar. The project is expected to meet the electricity demand of approximately 60,000 local homes and reduce greenhouse gas emissions by approximately 30,000 tons of carbon dioxide.

It is expected to begin its commercial operations before the end of December 2018.