Ismael Guerrero: Sure. So, look, you’ve been asking a couple of things. The first one was for how long we intend to hold the assets. I think that’s heavily dependent on when is the optimum point of selling. So, our intention is to retain for as long as we can and wait for opportunities, if there are opportunities in the market, to sell a portion of high — bigger portfolios whenever market conditions are good for sale. But initially, we don’t have a period to be holding. We are signing PPAs for 15 years to 20 years. So, the intention is to prepare the assets to be holding for the long run. And on how to get equity I think you can reply perfectly. I mean, there are many ways to get the equity we need and we are perfectly aware of what it means cash wise, the shift. So everything is very well planned, I think.
Operator: And it looks like we have time for one more question. Our last question comes from the line of Praneeth Satish with Wells Fargo. Please proceed with your question.
Praneeth Satish: Thanks. Good morning. So, I guess, when you look at your end markets, you know, we know DG demand, residential demand is weak. But I guess, focusing more on the utility side, have you seen signs of slowdown on utility-scale solar demand, given higher rates? And then on the Recurrent side, how are you seeing returns trending in the current market and what’s the ability to pass on, you know, the higher rates with higher PPAs? How much room is there for that?
Shawn Qu: So, I would invite Yan to provide colors from the module vendor side, and then Ismael can add more colors as a developer. Yan?
Yan Zhuang: Hey. Well, so the answer is on the demand side. We — we’re seeing a strong potential demand next year, because from our discussion with our many of the big utility-scale customers, you know, a lot of the — those customers, they have a huge pipeline that are coming up and some of them are just delayed into next year. So, for various reasons and as — pricing downtrend is one reason and other reasons like delayed interconnection and some other permitting delays. But we know the pipeline’s coming up next year. So, that’s a good sign.
Shawn Qu: Ismael?
Ismael Guerrero: Sure. Look, on the interest rates and the ability to pass over the hit on the model, there are a couple of things that we need to understand. The interest rates are high right now, but we don’t know for how long are they going to stay high. Everybody’s assuming in their modeling that sooner or later they will refinance at a better rate. So, you are having a hit right now, but it’s not a hit for the life of the asset, while we are having reductions on the CapEx of the projects that stay there for the life of the asset, because it’s a one-time investment. On the PPAs, we still see a very strong demand and the dynamic of that market is different from the interest rates. It’s basically dominated by supply and demand.
And because of the delays of interconnection, we still see that there is a significant shortage of good quality projects, and offtakers are generally struggling to secure all the PPAs they want to secure. So, we’ve been canceling a couple of PPAs ourselves to sign better ones, and right now, the market is strong. That’s all I can tell you right now.
Operator: And we have reached the end of our question-and-answer session. I’ll now turn the call back over to Chairman and CEO, Dr. Shawn Qu, for closing remarks.
Shawn Qu: Thank you for joining us today and for your continuous support. If you have any questions or would like to set up a call, please contact our investor relations team. Hope you have a wonderful Thanksgiving holiday with your families and take good care.
Operator: This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.
