EDF Renewables, Canadian Solar secure $373m financing for Brazilian solar plant
November 28, 2018 – Pirapora solar complex, a 399MWp plant in Brazil jointly owned by EDF Renewables and Canadian Solar, has raised BRL1.39bn ($373m) from multiple project finance sources.
EDF Renewables owns 80% of the plant and Canadian Solar owns the remaining 20% stake.
The 191.5MWp Pirapora I solar power project has raised BRL220m ($59m) of infrastructure debentures through private placement to accredited institutional investors.
The debentures, which have a tenor of 16 years, have been guaranteed by the Inter-American Development Bank (IDB) and IDB Invest, the private sector arm of the IDB Group.
The debentures have been assigned A+ (Global) and AAA (Brazil), with stable outlook, by Fitch Ratings.
This is the first debenture of a solar project in Brazil to secure a global investment grade rating and is also the IDB group’s first structured credit guarantee product for solar in Brazil.
BTG Pactual acted as financial advisor to the sponsors for this transaction.
Proceeds of the debenture issue will be used to repay a construction bridge loan provided by IDB.
The project has also received an 18-year financing of BRL529m ($142m) from the Brazilian Development Bank (BNDES).
Also, the 115MWp Pirapora II solar power project closed long-term project financing of BRL366m ($99m) from Banco do Nordeste and the Northeast Constitutional Fund.
The adjacent 92.5MWp Pirapora III solar power project secured long-term project financing of BRL271m ($73m) from BNDES and the Brazilian National Climate Fund.
Canadian Solar chairman and CEO Shawn Qu said: “These financings demonstrate the huge interest of leading financial institutions in the development of large scale solar energy infrastructure in Brazil.”
EDF Renewables Brazil CEO Paulo Abranches said: “The high quality of the projects and the solidity of the sponsors were determinant to structure this important funding.”
Operational since mid-2018, the Pirapora projects are among the largest solar complexes in the Latin America region.
The three plants are powered by 1,235,000 high-efficiency CS6U-P modules, which are manufactured by Canadian Solar in Sao Paulo, Brazil.
Solar energy from the projects is fully contracted with 20-year inflation-linked power purchase agreements.