Canadian Solar Inc. secured $50 million in project financing for the proposed 100-MWp Cafayate solar facility in Argentina as part of the RenovAR program.
The nonrecourse financing package consists of a $30 million A-loan from CAF - Development Bank of Latin America with a 15-year term and a $15 million loan from the Argentinian Development Bank of Investment and Foreign Trade with a 15-year term. The remaining $5 million will come from Banco de la Ciudad Buenos Aires with a 10-year tenor.
Canadian Solar and CAF have a financing target of $75 million and are seeking an additional $25 million in senior financing, which is expected to close in early 2019.
The RenovAR program aims to increase energy from renewables sources to 20% of Argentina's national electricity consumption by 2025.
Cafayate will sell electricity to CAMMESA at $56.28/MWh upon reaching commercial operation in the second quarter of 2019. CAMMESA is the Latin American country's wholesale power market administrator and clearinghouse.