Xinyi Solar sells 50% in 100-MW Anhui project to Shenzhen Ruihe

Shenzhen Ruihe Construction Decoration Co Ltd (SHE:002620) has agreed to make a CNY-225-million (USD 36.3m/EUR 33.2m) equity investment in Xinyi Solar Holdings Ltd’s (HKG:00968) 100-MW solar project in Anhui.

The companies inked an equity increase agreement on Monday, as disclosed in a press release. Under the terms of the deal, subsidiary Shenzhen Ruihe Hengxing Technology Development Co Ltd will take a 50% stake in project company Xinyi Solar (LuiAn) Co Ltd, also known as LuiAn YieldCo.

Upon completion of the equity increase transaction, Xinyi Solar’s unit Sun Wisdom Development Ltd will hold the other 50% in the Anhui Jinzhai Solar Plant Phase II project. The two owners of LuiAn YieldCo will provide interest-bearing loans of as much as CNY 350 million to the latter to help it finance the construction of the 100-MW photovoltaic (PV) plant.

Also a part of the deal, Sun Wisdom or any other Xinyi Solar unit will build the solar farm. It will receive CNY 7.00 per watt of PV capacity installed.

Xinyi Solar is focused on the making of solar glass, but has also expanded into the downstream solar power generation segment with 580 MW currently under development and construction. The equity transaction is expected to conclude within 120 days, it noted.

(CNY 1.0 = USD 0.161/EUR 0.147)

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