Renewable energy developer SolarBank Corp. has announced a significant $100 million financing agreement with infrastructure investor CIM Group to advance its solar energy portfolio in the United States. The deal will support a comprehensive project portfolio comprising 21 solar installations with a total capacity of 97 megawatts.
The financing is structured as a preferred equity investment, enabling SolarBank to maintain majority ownership of the project portfolio while preserving its share capital. Under the terms of the agreement, CIM Group will receive a 3% annual coupon and retain full ownership of the transferred investment tax credits.
This strategic financing represents a critical milestone in SolarBank's corporate evolution, signaling the company's transition from a solar project developer to a long-term solar asset owner. By securing this investment, SolarBank demonstrates its commitment to expanding renewable energy infrastructure and creating sustainable investment opportunities in the U.S. solar market.
The 21-project portfolio underscores SolarBank's comprehensive approach to solar development, potentially contributing to increased renewable energy generation and supporting broader national efforts to diversify energy sources. This investment could have significant implications for reducing carbon emissions and promoting clean energy infrastructure across the United States.
The financing arrangement allows SolarBank to grow its renewable energy footprint without diluting existing shareholder value, a strategic approach that could attract further investment and support the company's long-term growth objectives in the rapidly expanding solar energy sector.
