Shenzhen Energy will buy three California solar power plants for approximately US$232 million from Canadian Solar, as a way to diversify their business with power plant construction.
The company will apply for overseas loans of US$124 million through its American subsidiary and pay US$116 million from its own funds to pay for the remainder and relevant transaction expenses.
Recurrent Energy, the solar plant construction associate of Canadian Solar, will be in charge as bond arranger in the transaction.
The transaction involves the acquisition of a 100% stake in three solar assets:
The facilities have started commercial operations last year and have signed long-term contracts to supply power to local buyers.
Shenzhen Energy said in a statement:
“Based on the company’s latest five-year plan, it will follow a two-pronged strategy of helping in the transformation to low-carbon energy suppliers. Making acquisitions that can increase the company’s ratio of clean energy production is in line with the company’s development plan.”