SolarBank Corporation (NASDAQ: SUUN) has announced a major financial milestone, securing up to $100 million in project-level preferred equity financing for a 97 MW solar power portfolio spread across the United States. This financing arrangement, achieved through a joint venture with its subsidiary Abundant Solar Power Inc., underscores the company's strategic efforts to bolster renewable energy infrastructure without diluting shareholder value through the issuance of new shares.
The deal, structured with CIM Group, involves CIM acquiring non-convertible preferred equity in the joint venture, allowing SolarBank to retain majority ownership of the 21 solar projects included in the portfolio. The agreement features a complex revenue-sharing mechanism, tax credit transfers, and provisions for redemption rights after a five-year period, pending the finalization of documentation and the achievement of specific development milestones.
This financing is a testament to SolarBank's growing influence in the renewable energy sector, where it specializes in distributed and community solar projects across North America. With a development pipeline that potentially exceeds one gigawatt and a history of developing over 100 megawatts in renewable energy projects, SolarBank is at the forefront of the clean energy transition.
The development of this solar portfolio not only highlights the increasing viability and attractiveness of renewable energy investments but also solidifies SolarBank's role as a pivotal player in delivering sustainable energy solutions. These solutions cater to a wide range of markets, including commercial, industrial, municipal, and residential sectors, further driving the adoption of clean energy across the board. For more information on SolarBank's initiatives, visit https://www.solarbankcorp.com.
