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Canadian Solar (NASDAQ:CSIQ) +5.5% pre-market Tuesday after saying its Recurrent Energy subsidiary secured a $500M preferred equity investment commitment from BlackRock (BLK) through a fund managed by its Climate Infrastructure business.
The investment will represent 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis; Canadian Solar (CSIQ) will continue to own the remaining majority shares of Recurrent Energy.
Recurrent Energy said the investment will provide additional capital to grow its project development pipeline while executing its strategy to transition from a pure developer to a developer plus long-term owner and operator in select markets including the U.S. and Europe.
Recurrent Energy said it had a development pipeline of 26 GW in solar and 55 GWh in storage as of the end of September; it expects to have 4 GW of solar and 2 GWh of storage in operation in the U.S. and Europe by 2026.