Recurrent Energy Secures $164 Million in Debt Funding

Recurrent Energy – a utility-scale solar and energy storage developer and a subsidiary of Canadian Solar – secured a €150 million (~$164 million) multicurrency facility from Santander Corporate & Investment Banking (Santander CIB), a financial institution. The funding will help Recurrent Energy grow its business and retain more ownership of its assets in select markets.

The company has a total global solar project pipeline of 25 GW and 47 GWh of battery storage, of which 14 GW and 12 GWh have interconnections granted.

The new facility from Santander CIB comprises a €30 million (~$33 million) plus a $20 million term loan and a $110.5 million revolving credit facility, totaling three years. This financing gives Recurrent Energy significant flexibility to execute its growth plans and accelerate its transition to a develop-to-own model in its core markets in North America and Europe.

This transaction marks the fourth corporate facility between Recurrent Energy and Santander CIB over the past three years, demonstrating Santander’s commitment and continuing support for Recurrent Energy’s business. Santander CIB invested more than €10 billion (~$10.9 billion) in the sector in 2022.

“Recurrent Energy is significantly accelerating its deployment of solar PV and battery energy storage by expanding its leading IPP (independent power producer) revenue base and growing stable and predictable cash flows. We continue to foster long-term community partnerships and create a lasting positive impact, as our success will come from a true commitment to community values,” said Dr. Shawn Qu, Chairman and CEO of Canadian Solar.

Altus Power, an independent solar power producer, recently secured an incremental $47 million in debt funding from Blackstone. This total debt will provide long-term fixed-rate financing for 35 megawatts of operating assets in Altus Power’s portfolio.

According to Mercom’s Q1 2023 Solar Funding and M&A report, Announced debt financing for the solar sector in Q1 2023 totaled $3.9 billion in 17 deals, a 6% increase compared to the $3.7 billion raised in 21 deals in Q4 2022.