Solar photovoltaic modules manufacturer Canadian Solar is borrowing C$139m ($139.66m) from Deutsche Bank to finance solar power projects in Ontario.
The firm has signed a financing agreement, under which the bank will provide loans in non-recourse, short-term construction financing.
The loan will support the simultaneous construction of five utility-scale solar power plants, which will have a total combined capacity of 49MW AC.
Canadian Solar is expected to repay the loans with the proceeds of the sale of these projects, which are set to be built and connected through 2012 and 2013.
The projects have a 20-year power purchase contract with the Ontario Power Authority, a firm responsible for long-term supply of electricity in the province.
TransCanada will buy the five projects in accordance with the sales agreement announced in December 2011.
Canadian Solar chairman and chief executive Dr. Shawn Qu said "Having, a strong and equally committed financial partner, will allow us to further accelerate development of our already robust project pipeline.
"Our current and prospective project partners will now have even higher confidence in working with Canadian Solar as we continue to successfully execute on our growth strategy."
Image: TransCanada will buy solar projects from Canadian Solar. Photo: courtesy of Akhil Jariwala.