Canadian Solar said on Monday that was partnering with Sichuan Development Investment Management to establish an investment fund aimed at financing the development, construction and ownership of solar power projects in China.
A wholly owned Canadian Solar subsidiary and Sichuan Development struck the deal for the fund, which is expected to raise a total of CNY 5 billion ($800 million) from the two companies as well as from third party investors. Sichuan Development and Canadian Solar plan to contribute an initial amount equally, with third party investors expected to contribute the remaining amount to reach the target.
"Our partnership with Sichuan Development to develop, build and own solar power plants is an important milestone for Canadian Solar," said Canadian Solar Chairman and CEO Shawn Qu, who added that the partnership would "create an industry leader well positioned to participate in the expected growth in the adoption of solar energy in China."
Qu said that while the company expect to cover the whole country, he added tha the fund would focus on utility-scale and distributed generation solar projects in Sichuan Province and other solar resourceful regions in the country.
Sichuan Development is an investment management company established and funded by the Sichuan Development Holding, an investment arm of the Sichuan provincial government. According to Canadian Solar, Sichuan Development has more than CNY 23 billion ($3.7 billion) of assets under management and is expected to provide support to facilitate the project development and financing to the fund.