Editor's note: this article has been updated to include Canadian Solar's financial adviser.
Canadian Solar has announced the sale of a 49% stake in a 294 MW portfolio of solar projects in Mexico to Korea Electric Power Co. (Kepco) and fund manager Sprott Korea.
Marathon Capital advised Canadian Solar on the sale of the projects. The assets are:
- the 95 MW Horus project in Aguascalientes,
- the 99 MW Mayo project in Sonora, and
- the 100 MW Tastiota project, also in Sonora.
All three projects were awarded 15-year power purchase agreements in Mexico's third power auction in November 2017, with Mexico's National Center for Energy Control (CENACE) as the offtaker. They were also awarded contracts for clean energy certificates.
The plan is for Sprott and Kepco to acquire Canadian Solar's remaining stakes in the plants once they begin commercial operations.
KEPCO will own a 30.5% stake, while a consortium of Korean investors through a fund managed by Sprott will acquire the remaining 69.5%, says a Sprott representative in Toronto.
Horus is already under construction and is expected to come online during the second quarter of 2020. The $85 million project is expected to be financed with a $50 million loan from Sabadell and Intesa Sanpaolo, which will have a tenor close to 15 years. The debt package is expected to close before the year ends (PFR, 9/24).
Mayo and Tastiota are scheduled to begin operations in the first quarter of 2021.
It is not the first time Kepco and Sprott have co-invested in Canadian Solar assets. They acquired a portfolio of solar projects from Canadian Solar subsidiary Recurrent Energy in 2017 (PFR, 9/27/17).
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