GUELPH, CANADA: Canadian Solar Inc. announced that a wholly owned subsidiary of the company has entered into an agreement with Sichuan Development Investment Management Ltd. to establish an investment fund to finance the development, construction and ownership of solar power generation projects in China.
Sichuan Development is an investment management company established and funded by the Sichuan Development Holding Co. Ltd., an investment arm of the Sichuan provincial government. Sichuan Development has over RMB 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.
A total of RMB5 billion ($800 million) is expected to be raised from Sichuan Development, Canadian Solar and 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.