The solar portfolio consists of 24 operational solar power plants across England, Wales and Scotland, and is expected to provide inflation-linked solar power generation revenues for a period of 20 years under the UK's Renewable Obligation Certificate (ROC) and Feed-In Tariff (FIT) schemes.
The portfolio was valued at approximately £191.2m ($267.7m), net of distributions of £3.8m ($5.3m) made prior to closing. Completion of the sale has further reduced non-recourse project debt on the Company's balance sheet by approximately £123.0m ($172.2m). Canadian Solar expects to use the sale proceeds to further strengthen its balance sheet.
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.
Canadian Solar chairman and CEO Shawn Qu said: "We are delighted to work with Greencoat, a leading UK renewable infrastructure investment firm, on the sale of our solar asset portfolio. Our sizable operational portfolio creates an interesting investment platform for high quality solar asset growth in the UK.
"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."
