China Ming Yang Wind Power Group (Ming Yang) has signed agreement with certain parties, including CGN Wind Energy (CGN Wind), and Shenzhen Energy Group to jointly invest in a fund management company, namely Guangdong Oriental Millennium Renewable Energy Industry Fund Management (Oriental Millennium).
Ming Yang expects to make a limited partner capital commitment of up to RMB1 billion to the Guangdong Renewable Energy Industry Fund (the "Fund"), a fund to be established and managed by Oriental Millennium.
Oriental Millennium is currently wholly owned by a company affiliated with Mr. Chuanwei Zhang, Chairman and Chief Executive Officer of the Company. Upon the capital injections by Ming Yang, CGN Wind, Shenzhen Energy and the management team of Oriental Millennium as currently contemplated, Ming Yang expects to invest RMB28 million in Oriental Millennium, representing approximately 28% of its equity interest after the capital injection.
Following the capital injection in Oriental Millennium, Oriental Millennium plans to establish and manage the Fund, which is expected to raise a total capital commitment of up to RMB3.08 billion. The primary objective of the Fund is to seek investment opportunities in projects or companies relating to renewable energies, such as wind, solar, hydropower and biomass, located in Guangdong Province. CGN Wind and Shenzhen Energy are expected to be among the other limited partners of the Fund. And Guangdong Finance Investment (Holding) Co., Ltd. is expected to make a capital commitment of RMB50 million on behalf of the Guangdong government. The actual subscription amount will be paid upon the request of the general partner and subject to the needs of the renewable projects so invested over time.
"We believe the Fund will help generate synergistic effect by sharing resources and enlarging investment channels among industry players," commented Chuanwei Zhang, Chairman and Chief Executive Officer of the Company. "By leveraging the Fund’s investments, Ming Yang expects to benefit from obtaining resources and generating more business opportunities. On the other hand, Ming Yang expects to benefit the Fund by offering its resources and high technology advantages. We believe that this investment will also bring about potential opportunities for the development of downstream wind farms to be owned and operated by Ming Yang."