NEW YORK (TheStreet) -- Canadian Solar (CSIQ) spiked on Wednesday on the announcement it had been approved for a loan from banking firm Natixis for up to C$52 million in non-recourse, construction financing.
By late afternoon, shares had added 5.9% to $42.45.
The loan facility, which has a maturity term of construction plus 10 years, will be used to finance solar plant 'Glenarm' in Ontario. The project is expected to be in operation by the fourth quarter of 2014 and has already received a 20-year power purchase contract by the Ontario Power Authority.
"Access to attractive financial backers gives us a distinct competitive advantage and has been essential to the successful rapid ramp of our project pipeline," said CEO Dr. Shawn Qu in a statement.
Since Monday, the stock has gained 12.4% after the company announced a partnership with Hitatchi to provide photovoltaic modules for a solar project in Japan.
Also See: Canadian Solar Scores Hitachi Win
TheStreet Ratings team rates CANADIAN SOLAR INC as a Hold with a ratings score of C-. The team has this to say about their recommendation:
"We rate CANADIAN SOLAR INC (CSIQ) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."