SolarBank Corporation has entered into a strategic financing agreement with CIM Group to fund 97 megawatts of solar power projects across the United States. The up to $100 million project-level preferred equity financing will be structured through a joint venture with SolarBank's subsidiary, Abundant Solar Power Inc.
Under the terms of the mandate letter, CIM Group will acquire non-convertible preferred equity in the venture, while SolarBank maintains majority ownership of the 21 solar projects. Notably, the financing arrangement will not require the issuance of new SolarBank shares, preserving existing shareholder equity.
The financing package includes innovative features such as a revenue-sharing model and tax credit transfers. The agreement also provides CIM with redemption rights after a five-year holding period, subject to final documentation and project development milestones.
This financing represents a significant milestone for SolarBank, enabling the expansion of its renewable energy portfolio without compromising its financial structure. The 97 MW solar portfolio underscores the company's commitment to developing clean energy infrastructure across North America and demonstrates the growing investor confidence in solar energy projects.
The deal highlights the continued momentum in the renewable energy sector, with institutional investors like CIM Group showing increased interest in supporting solar power development. By securing substantial project-level financing, SolarBank is positioned to accelerate its growth and contribute to the transition toward sustainable energy solutions.
