One of the largest solar PV module manufacturers in the world, Yingli Solar, recently announced that it has entered into a cooperation agreement with the managing entity of the Shanghai Sailing Capital Investment Fund, the Shanghai Sailing Capital Management Co, through one of its subsidiaries, Yingli China.
The aim of the cooperation agreement is, of course, to increase investment into downstream solar energy projects within China. As per the agreement, the fund will enter life at an initial size of about RMB1 billion — of which, Yingli China will commit to contributing at least 51%. This capital contribution will be made in several installments.
The fund will direct investments primarily into Yingli Green Energy’s solar PV projects, but both parties are expected to take an active role in the fund’s management. The exacts of the partnership will be defined in greater clarity in the future through further definitive agreements.
“Renewable energy is emerging as a strategic industry in China and around the world, and the PV segment in particular has great prospects for future development,” noted Mr James Xiaodong Liu, Chief Executive Officer of Sailing Capital’s fund manager. “As China’s first large, cross-border RMB private equity fund, Sailing Capital is pleased to join a PV industry leader, Yingli Green Energy. The Fund, which will initially focus on ground-mounted solar power plant and distributed solar power generation system investments, marks the beginning of the two companies’ comprehensive cooperation through capital and industrial resource sharing. This partnership will not only enhance Yingli Green Energy’s strategic efficiency, but will also drive the rapid development of the industry and create value for the investors.”
“We are delighted to partner with Sailing Capital, a leading RMB private equity fund with robust funding resources, to accelerate our footprint in the downstream solar energy market,” stated Mr Bryan Li, Executive Director and Chief Strategy Officer of Yingli Green Energy. “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. 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.”