SolarBank Corporation announced on May 6, 2025, a Mandate Letter with CIM Group for up to US$100 million in project-based financing. This financing is intended for a portfolio of 97 MW of solar power projects located in the United States, structured as a preferred equity investment into a newly formed joint venture (New HoldCo) between CIM and Abundant Solar Power Inc., a wholly-owned subsidiary of SolarBank.
This transaction is designed to be non-dilutive to SolarBank's shareholders, as no shares or other securities of SolarBank will be issued. Assuming full funding, SolarBank will retain a majority ownership interest in what is expected to be 21 solar energy projects, significantly accelerating its growth as an independent power producer.
CIM will acquire non-convertible preferred equity interests in New HoldCo, with funding advanced at mechanical completion (20% of purchase price) and substantial completion (80%). CIM will receive a 3% annual coupon, payable semi-annually, and retain 100% of the Investment Tax Credit (ITC) sales, while the remainder of the cash flow from the portfolio will be distributed to Abundant Solar Power Inc.
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