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KITCHENER, ON - Recurrent Energy, a leading global developer of renewable energy and a subsidiary of Canadian Solar Inc. (NASDAQ: CSIQ), has announced the closure of a multi-currency credit facility valued at up to $415 million. According to InvestingPro data, Canadian Solar, currently trading at $9.65, has seen a significant 22.77% return over the past week, though the stock remains down over 32% in the past six months. The financing is backed by a consortium of four major banks and is aimed at bolstering the company’s position as it scales its global portfolio of solar and energy storage assets.
This new corporate credit facility is initially sized at $415 million and includes an accordion feature that allows for potential upsizing. It offers disbursements in USD, EUR, GBP, and AUD, providing Recurrent Energy with financial flexibility to pursue strategic opportunities and accelerate the deployment of clean energy projects worldwide. This financing comes at a crucial time, as InvestingPro analysis shows the company operates with a total debt of $5.27 billion and a debt-to-equity ratio of 1.87, highlighting the importance of strategic financial management.
The consortium of lenders includes Banco Santander, Rabobank, Intesa Sanpaolo, and Morgan Stanley, with Banco Santander acting as the Global Financial Advisor. The facility is aligned with Recurrent Energy’s strategy to expand its independent power producer (IPP) portfolio across diverse geographies and markets.
Ismael Guerrero, CEO of Recurrent Energy, expressed gratitude to the financial partners for their support and stated, "This agreement marks an important step in solidifying Recurrent Energy’s growth strategy and supporting our transformation into one of the world’s foremost independent producers and developers of renewable energy."
Recurrent Energy remains committed to its develop-and-sell model in selected markets while continuing to expand its IPP strategy. The company has developed, built, and connected 11 GWp of solar projects and more than 3 GWh of energy storage projects across six continents. As of December 2024, its global pipeline comprises over 25 GWp of solar power and 75 GWh of energy storage capacity.
The credit facility is a milestone in Recurrent Energy’s evolution as a fully integrated IPP and reinforces its long-term commitment to sustainable development and clean energy leadership.
This financial move comes amidst a broader industry trend where renewable energy companies are increasingly securing flexible financing solutions to support their growth in a competitive global market.
The information in this article is based on a press release statement from Canadian Solar Inc. and Recurrent Energy.
In other recent news, Canadian Solar Inc. reported its fourth-quarter 2024 earnings, revealing a notable discrepancy between expected and actual earnings per share (EPS). The company posted an EPS of -$1.47, missing the forecast of -$0.03, but managed to surpass revenue expectations with $1.67 billion against an anticipated $1.64 billion. Citi analysts highlighted the negative impact of recent trade rulings on Canadian Solar, particularly due to a significant increase in tariffs, which now stand at 375% for the company. Meanwhile, Roth/MKM downgraded Canadian Solar’s stock from "Buy" to "Neutral," citing challenges in the core module business and uncertainties surrounding tariffs. Oppenheimer, however, maintained an "Outperform" rating for Canadian Solar, despite reducing the price target from $25.00 to $23.00, acknowledging the company’s success in energy storage and project businesses. Canadian Solar’s strategic moves, such as launching the SolBank 3.0 energy storage solution and expanding U.S. manufacturing facilities, indicate ongoing efforts to navigate the challenging market environment. The company’s 2024 performance showed resilience with a total revenue of $6 billion, driven by strong module shipments, despite facing pressure from tariffs and project asset impairments. Looking ahead, Canadian Solar projects 2025 module shipments between 30-35 gigawatts and anticipates full-year revenue of $7.3-$8.3 billion.
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