Under the agreement, Deutsche Bank will provide short-term construction financing of C$104m (€72.3m) to Canadian Solar to support construction of the plants.
Canadian Solar will sell the output from the projects, which are likely to be operational through 2014, to the Ontario Power Authority as part of a 20-year power purchase contract awarded under the Ontario’s Feed-In-Tariff (FIT) program.
Launched in 2009, the FIT program is aimed at creating new clean energy industries and jobs, boost economic activity and the development of renewable energy technology, and to improve air quality by phasing out coal-fired generation by 2014.
Canadian Solar chairman and CEO Shawn Qu said that the loan is the second construction loan package it received from Deutsche Bank.
"We thank Deutsche Bank for its continued partnership, which underscores the strength of our Tier 1 position in the solar industry and our prospects for profitable growth.
"The support of global financial institutions, like Deutsche Bank, allows us to expand our actionable pipeline of the quality projects which our investors would like to acquire," added Qu.
