Canadian Solar has entered into agreements with International Finance Corporation (IFC) to receive a financing package of up to US$70 million in loans and equity investment. IFC's financing package includes: (i) loans to Canadian Solar of up to US$60 million and (ii) subscription of up to US$10 million in common shares of the Company. The partnership with IFC underscores the Company's commitment to expanding in Asia and Latin America, as well as conducting its operations in compliance with IFC's environmental and social performance standards.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in emerging markets. Proceeds of the investment and financing package will be used to fund Canadian Solar's module production facility in Vietnam and expansion of solar cell and/or module production capacities in other emerging markets.
"We are delighted to secure support from IFC. This partnership is another milestone that enhances our leading position in the global solar power industry," said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. "With IFC's commitment, we are able to expand our production capacity to meet the increasing demand for solar energy worldwide. We look forward to continuing our cooperation with IFC to accelerate the adoption of solar energy around the world, especially in developing economies, and to mitigate climate change."
Alzbeta Klein, Director, IFC Manufacturing, Agribusiness and Services said, "The solar industry is at an exciting juncture, where rapid cost declines have made it a scalable option for emerging markets. IFC views this transaction as a first step in a long-term partnership with Canadian Solar, a global leader in the industry, and we look forward to collaborating on business models that will enable low-carbon energy access."