A BlackRock fund is buying preferred equity in Canadian Solar’s Recurrent Energy unit that is convertible into a 20% stake. — Bloomberg
NEW YORK: BlackRock Inc has agreed to invest US$500mil in an arm of New York-listed Canadian Solar Inc as it increases its bets on renewable power and energy storage. Canadian Solar shares jumped as much as 21%.
A BlackRock fund is buying preferred equity in Canadian Solar’s Recurrent Energy unit that is convertible into a 20% stake, according to a statement reviewed by Bloomberg News. Canadian Solar will continue to own a majority of the business.
The fresh capital will help Recurrent Energy expand its project development pipeline, as well as transition into being a developer and long-term owner and operator of assets in markets including the United States and Europe.
The transaction is the first by BlackRock’s fourth climate infrastructure fund, which the firm launched in June with a target of US$7bil.
The deal aligns with BlackRock’s ambitions to become a player in the rapidly growing market for alternative assets. This month, it agreed to buy Global Infrastructure Partners for about US$12.5bil.
Recurrent Energy had a development pipeline of 26 gigawatts in solar and 55 gigawatt-hours in storage as of end-September, according to the statement.
The BlackRock investment will exclude Recurrent Energy’s project development business in Japan and China as well as some assets in Latin America. — Bloomberg
