Canadian Solar is a publicly listed company and as such has a large base of investors. According to the Company’s annual report on Form 20-F for the year ended December 31, 2014, Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar, was the largest individual shareholder of the company and beneficially owned approximately 24% of the Company as of March 31, 2015. Based on SEC public filings, the Company’s shareholders includes well-known institutions such as Putnam Investment Management, Norges Bank Investment Management, DNB Asset Management, Pictet Asset Management, Allianz Global Investors, BlackRock Asset Management, among others. Senior management owns another 1.0 % of the company.

The proposed investment consists of: (i) the purchase of up to $10 million of shares in Canadian Solar; and (ii) loans of up to US$40 million from IFC’s own account and US$20 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program (MCPP).

60.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity	20.0

* These investment figures are indicative

The company has wafer manufacturing facilities in Luoyang, Henan Province of China, cell manufacturing facilities in Suzhou and Funing in Jiangsu Province of China and module manufacturing facilities in Ontario, Canada and in Changshu, Jiangsu Province of China, and Indonesia. The module manufacturing facility being established currently in Vietnam is located in the Vietnam Singapore Industrial Park (VSIP), Hai Phong, Vietnam.

1. Climate Change Mitigation: Solar energy displaces conventional fossil-fuel based electricity generation and thus mitigates climate change. Canadian Solar''s products help reduce CO2 emissions by hundreds thousands of tons every year depending on location, each MWp installed saves approximately 400 to 800 tons of CO2 per year, or 12-24,000 tons of CO2 over its lifetime. The proposed IFC equity investment will help Canadian Solar to expand its manufacturing capacities located in emerging markets which will strengthen the company''s solar energy solution in emerging markets to enhance its global competitiveness in terms of module supply. Note that the two plants under considerations are expected to indirectly support the avoidance of 365,000 tons per year.
2. Job Creation: Canadian Solar''s expansion plan will benefit the labor market in Vietnam, potentially Brazil and other emerging market by creating direct employment opportunities for newly skilled jobs in the solar industry as well as indirect jobs during construction and in operations. The new factories are potentially creating up to a 1,000 job opportunities including a significant share in Vietnam.
3. Technology Transfer: The Project will enhance the development of important climate related manufacturing technology within emerging markets. The Project will also increase the availability of important components for solar modules to generate solar in these countries and to set-up local supply chains.

IFC''s stamp of approval: IFC''s investment in Canadian Solar will help catalyze international debt financing to this leading Canadian solar company as it moves beyond its home markets and executes upon its emerging markets growth strategy.
Long term financing and partnership for expansion in emerging markets investments: IFC can provide Canadian Solar with local and hard currency financing across multiple geographies as well as access to long term debt and equity capital that will help to optimize its capital structure. Historically, Canadian Solar has relied on Canadian, American, European and Chinese acquisition and project financing facilities and as such, IFC''s involvement will help diversify their borrowing base and provide them with a long-term equity investor. This Project will establish a corporate level relationship with a global industry leader and lays the groundwork for a long term partnership with IFC across the full solar value chain with opportunities to support Canadian Solar''s manufacturing, service and infrastructure related businesses.
Mobilization: IFC is mobilizing capital from the MCPP program to increase the sources of finance for the Company''s growth in emerging markets.
Ability to access global clients network: IFC is well placed to "match make" the Company with its clients who are interested to use solar power. Commercial and industrial segments are expected to surpass utility scale solar projects in a few years. Canadian Solar has expressed interest to work with IFC in developing scalable models for distributed generation.

This is a category B project. Please refer to the Environmental and Social Review Summary (“ESRS”), disclosed separately, for additional information

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.