We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Solar Secures $50M Loan for Solar Plant in Argentina
Read MoreHide Full Article
Canadian Solar Inc. (CSIQ - Free Report) recently announced that it has secured $50 million financing for its 100.1-megawatt peak (MWp) solar power project in Cafayate, Salta Province, Argentina. The non-recourse financing package is arranged by CAF — Development Bank of Latin America. The company has a financing target of $75 million with the bank. It is also seeking an additional amount of $25 million in senior financing, which is expected to close in early 2019.
The solar project is currently under construction. It is likely to reach commercial operation in the second quarter of 2019. The company will install 289,800 high efficiency MaxPower CS6U-P 345 W modules and hopes to generate 239,696 megawatt hours (MWh) of electricity per year, which will then be sold to CAMMESA.
International Portfolio: A Boon
Canadian Solar caters to a geographically-diverse global customer base. As of October 2018, Canadian Solar’s solar power plants in operations totaled 340.1 MWp in the United States, 92.9 MWp in Japan, 79.8 MWp in Brazil, 126.1 MWp in India and 462.6 MWp in China.
Courtesy of its ongoing research and development initiatives, the company introduced three of its next generation solar modules at Intersolar Europe held from Jun 20 to Jun 22 in Munich, Germany. The three modules launched are BiKu, HiKu poly and HiDM (High-Density Module).
Such a robust portfolio expansion is likely to boost the company’s revenue generation capability, evident from its nearly 25% top-line improvement in the first nine months of 2018 year over year. Considering the international solar projects coupled with the unveiling of new solar modules, we may anticipate the company to continue with a strong revenue growth momentum in the upcoming quarters as well.
Global Renewable Outlook
Per International Energy Agency (IEA), in the Renewables 2018 forecasts, the share of global renewables energy demand is expected to grow by one-fifth in the next five years to reach 12.4% of the total energy need by 2023. The IEA envisions renewables to witness the fastest growth rate in the electricity sector by providing nearly 30% of total power demand in 2023, up from 24% in 2017.
Other companies operating in renewable space, worth mentioning are Renesola Ltd. (SOL - Free Report) , which boasts a global pipeline of approximately 1.65 GW of projects in various stages and SunPower Corp. , which is fortifying its footprint in the global market with plans to build six solar projects across many regions in Mexico. Additionally, another company in the same arena, JinkoSolar Holding Co. (JKS - Free Report) , flaunts multiple global solar projects in its pipeline.
Price Movement
In the past 12 months, shares of Canadian Solar have outperformed the industry. The stock has declined 5%, narrower than the industry’s decrease of 16.7%.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Canadian Solar Secures $50M Loan for Solar Plant in Argentina
Canadian Solar Inc. (CSIQ - Free Report) recently announced that it has secured $50 million financing for its 100.1-megawatt peak (MWp) solar power project in Cafayate, Salta Province, Argentina. The non-recourse financing package is arranged by CAF — Development Bank of Latin America. The company has a financing target of $75 million with the bank. It is also seeking an additional amount of $25 million in senior financing, which is expected to close in early 2019.
The solar project is currently under construction. It is likely to reach commercial operation in the second quarter of 2019. The company will install 289,800 high efficiency MaxPower CS6U-P 345 W modules and hopes to generate 239,696 megawatt hours (MWh) of electricity per year, which will then be sold to CAMMESA.
International Portfolio: A Boon
Canadian Solar caters to a geographically-diverse global customer base. As of October 2018, Canadian Solar’s solar power plants in operations totaled 340.1 MWp in the United States, 92.9 MWp in Japan, 79.8 MWp in Brazil, 126.1 MWp in India and 462.6 MWp in China.
Courtesy of its ongoing research and development initiatives, the company introduced three of its next generation solar modules at Intersolar Europe held from Jun 20 to Jun 22 in Munich, Germany. The three modules launched are BiKu, HiKu poly and HiDM (High-Density Module).
Such a robust portfolio expansion is likely to boost the company’s revenue generation capability, evident from its nearly 25% top-line improvement in the first nine months of 2018 year over year. Considering the international solar projects coupled with the unveiling of new solar modules, we may anticipate the company to continue with a strong revenue growth momentum in the upcoming quarters as well.
Global Renewable Outlook
Per International Energy Agency (IEA), in the Renewables 2018 forecasts, the share of global renewables energy demand is expected to grow by one-fifth in the next five years to reach 12.4% of the total energy need by 2023. The IEA envisions renewables to witness the fastest growth rate in the electricity sector by providing nearly 30% of total power demand in 2023, up from 24% in 2017.
Other companies operating in renewable space, worth mentioning are Renesola Ltd. (SOL - Free Report) , which boasts a global pipeline of approximately 1.65 GW of projects in various stages and SunPower Corp. , which is fortifying its footprint in the global market with plans to build six solar projects across many regions in Mexico. Additionally, another company in the same arena, JinkoSolar Holding Co. (JKS - Free Report) , flaunts multiple global solar projects in its pipeline.
Price Movement
In the past 12 months, shares of Canadian Solar have outperformed the industry. The stock has declined 5%, narrower than the industry’s decrease of 16.7%.
Zacks Rank
Canadian Solar currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>