Business World of Renewable Energy

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Canadian Solar Clears Hurdle for IPO of CSI Solar - Financing in Mexico Completed

Guelph, Canada - Canadian Solar has reached an important milestone for the IPO of its subsidiary CSI Solar in China and completed the financing of a major project in Mexico. The share is profiting and climbing.

260 million dollars for the IPO of Canadian Solar subsidiary CSI Solar in China

The Canadian solar company Canadian Solar wants to list its module and system solutions subsidiary CSI Solar on the stock exchange in China. In order to qualify for the planned IPO, CSI Solar first has to obtain fresh capital. The company plans to raise capital in the order of about USD 260 million (1.78 billion RMB). Canadian Solar announces that leading institutional investors and strategic partners ("third-party investors"), as well as employees of CSI Solar and Canadian Solar, will participate in the capital raising.

According to Canadian Solar, the third-party investors, including, among others, the fund and investment management companies CDH Investment Management Company Limited and SIP Oriza PE Fund Management Co. have agreed to acquire existing CSI Solar shares for a total of $219 million (RMB 1.50 billion). In addition, Canadian Solar employees will purchase existing CSI Solar shares for $4.5 million (RMB 31 million). In addition, CSI Solar employees and board members have agreed to purchase newly issued CSI Solar shares for a total of $36 million (RMB 248 million) under CSI Solar's stock ownership plan.

Following completion of the transaction, Canadian Solar, the third-party investors, Canadian Solar employees and CSI Solar employees (ESOP platforms) will each own 74.9 percent, 20.0 percent, 0.4 percent and 4.7 percent of CSI Solar, respectively.

Canadian Solar, KEPCO and Sprott secure financing for Mexican Tastiota project

Canadian Solar has also announced the completion of the financing for its 126 MWp Tastiota Project in the State of Sonora, Mexico. The financing package arranged by Canadian Solar was provided by Sumitomo Mitsui Banking Corporation ("SMBC"). The financing will include a senior loan of USD 67 million and two facilities of USD 15 million and USD 12 million, respectively, the latter covering the construction and operating phases of the project. Following the sale of the 49 percent interest in a 370 MWp portfolio of Mexican projects in November 2019 to South Korean utility Korea Electric Power Corporation (KEPCO) and fund manager Sprott Korea, these parties have entered into an agreement to acquire Canadian Solar's remaining interest in the projects. In addition to the Tastiota project, the portfolio includes the El Mayo (126 MW) and Horus (119 MW) projects in Aguascalientes, also located in the state of Sonora.

Share gains strongly in current trading week

In the current trading week, the RENIXX Group share has so far climbed 17 percent to currently EUR 36.3 (08.10.2020, 2:31 pm, Stuttgart Stock Exchange). Since the beginning of the year the share price has thus risen by 86 percent.

Source: IWR Online, 08 Oct 2020