Canadian Solar Inc. CSIQ shares are trading higher Tuesday after its subsidiary, Recurrent Energy, announced that it has secured a $500 million investment from BlackRock.
The Details:
Canadian Solar’s Recurrent Energy subsidiary announced it has secured a $500 million preferred equity investment commitment, convertible into common equity, from BlackRock through a fund managed by its climate infrastructure business.
The $500 million investment will represent 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis. Canadian Solar will continue to own the remaining majority shares of Recurrent Energy after the closing of the investment.
“We started our global energy development business in 2009 and have since strategically grown Recurrent Energy as Canadian Solar’s premier renewable energy platform, forging a new path in developing, financing and constructing first-of-their kind solar and energy storage projects,” said Dr. Shawn Qu, CEO of Canadian Solar.
“We are now at an inflection point for renewable energy growth. The infusion of capital from our partner BlackRock, who is also Canadian Solar’s largest institutional investor, will provide the resources needed to further scale the Recurrent Energy platform and meet record clean energy power demand across the world.”
According to data from Benzinga Pro, 26.88% of available Canadian Solar shares are being sold short which may be contributing to the stock’s price volatility.
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CSIQ Price Action: According to Benzinga Pro, Canadian Solar shares are up 12.8% at $23.75 at the time of publication.
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