New York Stock Exchange-listed Chinese solar panel producer Yingli Green Energy Holding Company Ltd. says that it has signed an agreement with Shanghai Sailing Capital Management to jointly form a renewable energy fund in Shanghai to invest in downstream solar energy projects in China, according to a company announcement.
The joint fund will have an initial size of approximately RMB1 billion ($160 million). Yingli China will commit around 51% of the total capital in several installments through its wholly owned affiliate in China.
The fund is expected to invest primarily in Yingli Green Energy’s solar projects through various portfolios, says the announcement. Both parties will take an active role in the management of the Fund.
"As China’s first large, cross-border RMB private equity fund, Sailing Capital is pleased to join a PV industry leader," says James Xiaodong Liu, CEO of Sailing Capital. "The Fund…will initially focus on ground-mounted solar power plant and distributed solar power generation system investments."
Headquartered in Baoding City, Hebei Province, Yingli has distributed more than 9,000 megawatt PV modules to customers worldwide.
Sailing Capital was established by Chinese state-owned financial holding congolamerate Shanghai International Group. The fund’s first round raised RMB12 billion ($1.9 billion).
Last December, Sailing Capital signed a memorandum of understanding with Shenzhen-listed Shanghai New Culture Media to jointly launch a RMB1 billion ($165 million) fund to invest in culture-related sectors.
It also launched a RMB5 billion ($821m) buyout fund to support cross-border deals around the same time.