Recurrent Energy bags debt for 300-MW solar cluster in Brazil

Recurrent Energy LLC, a unit of Canadian Solar Inc (NASDAQ:CSIQ), has obtained BRL 490 million (USD 99.7m/EUR 91.6m) in debt financing to support the operation of a 300-MW solar park cluster commissioned recently in Brazil.

The non-recourse project financing is earmarked for the Ciranda Solar Power Cluster, which comprises Ciranda Phase I and Ciranda Phase II that were powered up in August, Canadian Solar said on Wednesday.

Funds for Ciranda Phase I came from the issuance of a BRL-285-million bond in a private placement with investment funds managed by alternative investment platform Vinci Partners. A debt facility of BRL 205 million, meanwhile, was extended to Ciranda Phase II from state-owned development bank Banco Nacional de Desenvolvimento Economico e Social (BNDES). Both financing rounds are inflation-indexed to the National Consumer Price Index (IPCA).

Equipped with Canadian Solar's BiHiKu modules, the Ciranda Phase I and Ciranda Phase II parks will be run under a 15-year, inflation-adjusted power purchase agreement (PPA) awarded in a private auction held by utility Companhia Paranaense de Energia (BVMF:CPLE6), better known as Copel.

(BRL 1.0 = USD 0.203/EUR 0.187)

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