Canadian Solar sells off 142MWp solar portfolio to Greencoat Solar II
Canadian Solar affirmed the sale of a 142 MWp solar portfolio to Greencoat Solar II LP managed by Greencoat Capital LLP.
The Solar Portfolio comprises of 24 operational solar power plants across England, Wales and Scotland and is anticipated to provide inflation-linked solar power generation revenues for a period of 20 years as far as the UK’s Renewable Obligation Certificate and Feed-In Tariff schemes are taken into account.
The portfolio was valued at approximately GBP 191.2 million (US$267.7 million), net of distributions of GBP 3.8 million (US$5.3 million) made prior to closing. Completion of the sale has further reduced non-recourse project debt on the Company’s balance sheet by approximately GBP123.0 million (US$172.2 million). Canadian Solar expects to use the sale proceeds to further strengthen its balance sheet.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar said “This transaction demonstrates our continuing ability to monetize our assets effectively and maximize shareholder return. We are well positioned to capitalize on the appreciating sterling pound currency environment and look forward to partnering with Greencoat on future opportunities.”
The 24 solar power plants will generate approximately 142,000 MWh of clean energy annually, sufficient for approximately 46,000 UK households and will reduce CO2 emissions by 56,800 tons per year. Three of the solar power plants will provide additional benefit under the Community Interest Companies (CIC) scheme, in which profits will benefit the community. The solar power portfolio includes 272,000 Canadian Solar CS6P and CS6U modules. Canadian Solar will provide operations and maintenance services for all 24 solar power plants.