Published on January 30th, 2016 | by Joshua S Hill3
Canadian Solar Secures $70 Million Investment In Vietnam Production Facility
January 30th, 2016 by Joshua S Hill
Canadian Solar has announced that it has secured investments worth $70 million to support the development of a module production facility in Vietnam.
Canadian Solar, one of the world’s largest solar power companies, made the announcement Thursday, revealing that it had entered into agreements with the International Finance Corporation (IFC) to receive a package of up to $70 million in loans and equity investment. Specifically, the package from IFC — a member of the World Bank Group and the largest global development institution focused solely on the private sector in emerging markets — includes loans to Canadian Solar worth up to $60 million and a subscription of up to $10 million in common shares of Canadian Solar.
“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.”
Canadian Solar announced that the investments were intended for the development of a module production facility in Vietnam, as well as the expansion of solar cell and/or module production in other emerging markets.
“The solar industry is at an exciting juncture, where rapid cost declines have made it a scalable option for emerging markets,” said Alzbeta Klein, Director, IFC Manufacturing, Agribusiness and Services. “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.”
Canadian Solar had an impressive run through 2015, with a better-than-expected third quarter continuing strong growth throughout the year, including increased shipments and revenue. The much-ballyhooed COP21 climate agreement lit a fire under a number of renewable energy companies’ shares, which was bolstered in Canadian Solar’s case with a rush towards the end of the year which saw the company’s shares rise around 23%.
Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.