SolarBank Corporation, an independent renewable and developer, owner, and operator of distributed and community solar projects, and CIM Group, a real estate and infrastructure owner and developer, have entered into a mandate letter providing for up to $100 million in project financing for a portfolio of solar projects totaling 97 MW located across the U.S.
The transaction will be structured as a preferred equity investment in a newly formed entity, New HoldCo, which will be a joint venture between CIM and Abundant Solar Power, a wholly owned subsidiary of SolarBank.
CIM will acquire non-convertible preferred equity interests in New HoldCo. As per the membership interest purchase agreement to be entered into by New HoldCo and Abundant Solar Power, New HoldCo would advance 20% of the purchase price for each project at mechanical completion of such project, and 80% at substantial completion of such project.
“The financing is another major milestone in SolarBank’s plans to grow its status as an independent power producer. Assuming full funding, SolarBank will retain a majority ownership interest in what is expected to be 21 solar energy projects with a total capacity of 97 MW,” said Dr. Richard Lu, President and CEO of SolarBank. “The Transaction has been structured such that SolarBank does not have to issue any new shares, as the financing is being completed at the project company level.”
“CIM Group has a long history of developing and investing in essential infrastructure projects that seek to benefit communities and the environment,” said Kyle Hatzes, Managing Director, Infrastructure & Impact Investments, CIM Group. “This transaction with SolarBank to grow its portfolio of solar projects underscores our ongoing commitment to the renewable energy sector and our focus on supporting innovative companies leading the energy transition across North America.”
In January, the company also announced that Qcells, a solar cell and module manufacturer, through an affiliate, has signed an acquisition agreement with the company to acquire four ground-mounted solar projects totaling 25.577 MW in upstate New York.
According to Mercom’s Q1 2025 Solar Funding and M&A report, announced large-scale project funding in Q1 2025 increased by 27% compared to Q1 2024.
