Canadian Solar Inc. announced today that Banco do Nordeste do Brasil S.A. (BNB) has provided non-recourse project financing of 136 million Brazilian reais (approximately US$28 million) to support the construction and operation of its 79 MWp Lavras II solar power project in Brazil. BNB is Latin America's largest regional development bank, helping the economy of Brazil's Northeast.
Lavras II is expected to reach commercial operation in the second quarter of 2022 and will be powered by Canadian Solar high efficiency BiHiKu modules. Canadian Solar won the Lavras II solar project in a private auction held by COPEL Energia, which is part of COPEL Group, one of the top 10 energy trading companies in Brazil, in September 2019, with a 15-year, inflation-adjusted PPA.
This inflation-linked debt tied to the National Consumer Price Index (IPCA) will provide improved capital and resource alignment with the Brazilian economy.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar Inc., commented, "We are pleased to extend our long-standing partnership with BNB. This financing once again demonstrates our capabilities and commitment to the Brazilian market, where we are a market leader with more than 2 GWp of backlog projects that have secured power purchase agreements," Dr. Qu continued, "Sustainable public sector commitment for clean and affordable solar energy infrastructure has cemented Brazil as the biggest and fastest growing renewable energy market in Latin America. As a leader in financing infrastructure projects, BNB's continuing participation in our solar portfolio reinforces our confidence in the long-term potential of Brazil's renewable energy sector."