(Bloomberg) BlackRock Inc. agreed to invest $500 million 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 US and Europe. The transaction is the first by BlackRock’s fourth climate infrastructure fund, which the firm launched in June with a target of $7 billion.
