Sailing, Yingli form $161m China solar fund
Shanghai Sailing Capital Management is teaming up with Yingli Green Energy Holding to form a solar energy-focused fund with an initial size of RMB1 billion ($161 million).
According to a statement, Yingli China, a wholly-owned subsidiary of Yingli Green Energy, China's largest photovoltaic (PV) module maker, will contribute about 51% of the total capital through installments. Sailing will invest through its Shanghai Sailing Capital Investment Fund, an affiliated entity of Sailing Capital International Fund, which launched in 2012.
The renewable energy fund is expected to primarily invest in ground-mounted solar power plants and distributed power generation systems. Both parties will take an active role in managing the fund, the satement said.
"As a long-term strategic repositioning, this cooperation is a solid step towards our transition from a PV manufacturer to a renewable energy solutions provider," said Bryan Li, executive director and chief strategy officer of Yingli Green Energy.
"By securing a priority right in investing in Yingli Green Energy's downstream solar projects, we should also be able to seek more sources of investment in solar PV projects, while at the same time minimizing potential risks."
Yingli currently has a PV project pipeline of around 1 gigawatts, primarily in China. The company completed the construction of 128 megawatts of PV projects in the country in 2013.
The Sailing Capital International Fund rolled out in 2012 with a target of RMB50 billion. It is the largest international renminbi-denominated vehicle ever created and aims to aid overseas acquisitions by Chinese companies.
The fund has already raised RMB12 billion from both state and non-state owned enterprises, listed companies and financial institutions.
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