A per the agreement terms, the fund will have an initial size of approximately RMB1bn ($161m), of which 51% of the total capital will be contributed in several installments by Yingli China through its wholly-owned affiliate in China.
The fund is primarily expected to invest in Yingli Green Energy’s solar photovoltaic (PV) projects through various portfolios, with both parties taking an active role in its management.
Sailing Capital fund manager chief executive officer James Xiaodong Liu said the fund 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," Liu added.
Yingli Green Energy executive director and chief strategy officer Bryan Li said the cooperation is a solid step towards the company’s 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, should also be able to seek more sources of investment in solar PV projects, while at the same time minimizing potential risks," Li added.
The parties are now scheduled to enter into further definitive agreements to formally define their partnership and specific investment opportunities.
