Export Development Canada (EDC) today announced USD 72 million in financing within the larger USD 655 million senior project finance banking facilities for Phase 3 of the Mohammed bin Rashid Al Maktoum Solar Park (Solar Park) in Dubai, which will become the most powerful solar power plant in the world upon completion.
The project consists of the development, construction, and operation of an 800MW solar photovoltaic (PV) power project located within the Solar Park. EDC’s financing is predicated on the sale of solar panels from Canadian Solar, a Guelph-based clean technology company.
"We are proud to be partnering with Masdar/DEWA/EDF on this outstanding project,” says Dr. Shawn Qu, Chairman and Chief Executive Officer, Canadian Solar. “On the financing side, we are very pleased to have EDC’s commitment and continuous support for our global growth. As Dubai diversifies its energy portfolio, our partnership will serve as an excellent example for future utility-scale solar projects in the region, and we are eager to contribute further to the energy market growth in the Middle East."
The 16 square-kilometre 800 MW PV plant will generate around 2.5 million megawatt-hours of electricity per annum on completion. Unlike conventional solar power arrays, the park will use tilting panels that track the sun, thereby maximising output.
“Supporting clean technologies is a strategic priority for EDC,” said Carl Burlock, Senior Vice President, Financing and International Growth Capital, EDC. “Canadian Solar’s contribution to an international project of this size is a testament to Canada’s leading expertise in the clean energy space.”
The Solar Park will be the largest single-site solar park in the world. By 2030, it is expected to displace an estimated 6.5 million tonnes of carbon dioxide each year.
This is an example of an eligible project for EDC’s Green Bond program. In June 2017, EDC issued its third USD 500M Green Bond, with previous bonds of 300M in January 2014 and 300M in December 2015, each receiving strong support from the green bond investor community.
“Green Bonds and transactions such as this one are examples of EDC’s contribution to international climate change objectives, and our alignment with broader industry trends towards a climate-resilient future,” added Burlock.
About Canadian Solar
Founded in 2001 in Canada, Canadian Solar is one of the world's largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions, Canadian Solar also has a geographically diversified pipeline of utility-scale power projects in various stages of development. In the past 16 years, Canadian Solar has successfully delivered over 21 GW of premium quality modules to over 100 countries around the world. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, we equip Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all our support is a commitment to sustainable and responsible business. To help Canadian businesses facing extreme financial challenges brought on by the global response to COVID-19, the Government of Canada has expanded EDC’s domestic capabilities until December 31, 2021. This broader mandate will enable EDC to expand its support to companies focused domestically.
For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.