(Reuters) - Canadian Solar Inc, which is focusing on the lucrative power plants business to drive growth, said it will borrow C$139 million ($139 million) from Deutsche Bank to build five utility-scale projects in Ontario, Canada.
Canadian Solar will repay the loans when the projects, which have a 20-year power purchase contract with the Ontario Power Authority, are acquired by TransCanada Corp.
TransCanada agreed to buy 86 megawatt (MW) of solar power projects in Ontario from Canadian Solar last December.
The Deutsche Bank funding is for 49 MW of solar power, Canadian Solar said.
Solar companies are turning to building power plants as pure panel manufacturing remains unprofitable due to a sharp drop in panel prices.
Larger rival SunPower Corp said on Monday it will team up with its partners in China to manufacture and sell its c7 tracker concentrator technology in the Asian country.
U.S.-based SunPower will invest $15 million and receive a 25 percent stake in the $60 million joint venture.
Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila