Canadian Solar Secures $200 Million Deal with PAG: A Game-Changer for Clean Energy Investments

In a landmark move that promises to reshape the landscape of renewable energy finance, Canadian Solar Inc. has announced a major investment agreement with PAG, a preeminent investment firm in the Asia Pacific. This deal, valued at an impressive US$200 million, involves a private placement of secured convertible notes, marking a significant milestone for both companies and the broader clean energy sector.

A Strategic Investment for a Sustainable Future

The partnership between Canadian Solar and PAG is set to close in the fourth quarter of 2024, contingent on standard closing conditions. This strategic move not only strengthens Canadian Solar’s capital structure but also opens new avenues for solar development projects and debt repayment. The deal provides Canadian Solar with the flexibility to optimize its financial footing while fueling its ambitious growth plans.

The secured convertible notes, which will carry an annual interest rate of 6%, are set to mature on December 31, 2029. These notes offer a unique blend of security and growth potential, with holders given the option to require repurchase shortly after December 31, 2027. The notes are convertible into Canadian Solar’s common shares at an initial price of US$18.20—reflecting a 23.4% premium over the company’s last reported stock price of US$14.75. This conversion rate is designed to adjust in line with market conditions, ensuring a fair and flexible investment opportunity.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, expressed his enthusiasm about the partnership: “We are thrilled to partner with PAG, a seasoned investor in the solar industry. The Notes offer us a flexible financing solution that aligns with both our capital requirements and business objectives. This transaction paves the way for long-term strategic collaboration with PAG in solar and clean energy.”

PAG’s Endorsement: A Testament to Canadian Solar’s Market Leadership

Dr. Weijian Shan, Executive Chairman of PAG, praised Canadian Solar’s robust market position and growth trajectory. “With two decades of experience in the solar industry, Canadian Solar has established a solid foundation as a globally leading solar player. Today, it is well-positioned for growth, propelled by its scaled module business, rapidly expanding energy storage segment, and renewable energy development platform. We are pleased to partner with Canadian Solar in the global clean energy transition.”

This investment reflects PAG’s confidence in Canadian Solar’s capabilities and future prospects, underscoring the company’s pivotal role in the global clean energy transition. The partnership is poised to accelerate Canadian Solar’s initiatives in solar and battery energy storage, further solidifying its position as a trailblazer in the renewable energy sector.

Regulatory and Compliance Considerations

It is important to note that the issuance of these securities is exempt from registration under the Securities Act of 1933, as amended, in accordance with Regulation S. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful.

About Canadian Solar: A Global Leader in Solar Technology

Founded in 2001 in Canada, Canadian Solar has risen to become one of the world’s largest solar technology and renewable energy companies. The company excels in manufacturing high-quality solar photovoltaic modules, providing cutting-edge solar and battery energy storage solutions, and developing large-scale solar power projects. With a robust global pipeline and a track record of over 125 GW of delivered solar modules, Canadian Solar is a cornerstone in the renewable energy landscape.

Since its entry into project development in 2010, Canadian Solar has successfully developed, built, and connected over 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects worldwide. The company currently manages 1.2 GWp of solar power projects in operation, with an additional 6.5 GWp under construction or in backlog, and a pipeline of 19.8 GWp in various stages of development. Additionally, Canadian Solar oversees 600 MWh of battery energy storage projects with a pipeline of around 56 GWh, reflecting its commitment to driving innovation and growth in the clean energy sector.

For more information about Canadian Solar, visit their website or follow them on LinkedIn.

Source: Canadian Solar Inc.