Canadian Solar agrees USD-33m National Bank of Canada loan

Dec 2, 2013 - Canadian Solar Inc (NASDAQ:CSIQ) said Monday it will receive as much as CAD 35 million (USD 33m/EUR 24.3m) in short-term construction financing from National Bank of Canada (TSE:NA) for a solar project in the Ontario province.

The company, which makes solar photovoltaic (PV) modules in China and builds solar parks globally, said that the credit line would finance one of its Ontario projects without disclosing details. “[..] this transaction gives us additional flexibility and will allow us to further accelerate the development of our already strong, actionable pipeline in Canada and worldwide,” said chairman and CEO Shawn Qu.

Canadian Solar turned to a net profit of USD 27.7 million (EUR 20.5m) in the third quarter of 2013 from a loss of USD 43.7 million a year ago. Revenue grew by 50.6% year-on-year and 29.1% quarter-on-quarter to USD 490.9 million. The Americas market accounted for 46.9% of the total.

More and more solar PV product manufacturers are diversifying into the downstream segment in an effort to boost their revenues. Earlier today, Chinese sector player Hanwha SolarOne Co Ltd (NASDAQ:HSOL) said it would get access to some USD 574 million in credit over the coming three years under a deal with Bank of Beijing Co Ltd (SHA:601169). The framework agreement with the lender will support Hanwha SolarOne's efforts to strengthen its downstream business in China.

(CAD 1 = USD 0.940/EUR 0.694)

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