Sichuan Development, Canadian Solar and third party investors will raise a total of CNY5bn ($800m).
Under the agreement, Sichuan Development and Canadian Solar plan to contribute an initial amount equally while the third party investors are expected to contribute the remaining amount to reach the target.
Sichuan Development, an investment arm of the Sichuan provincial government, has established and funded the investment management company Sichuan Development.
With over CNY23bn ($3.7bn) of assets under management, Sichuan Development will provide support to facilitate the project development and financing to the fund.
Canadian Solar chief executive officer and chairman Dr Shawn Qu said: "Our partnership with Sichuan Development to develop, build and own solar power plants is an important milestone for Canadian Solar.
"This partnership will leverage Canadian Solar’s proven track record in developing and building solar power plants on a global basis with Sichuan Development financial strength and credibility to create an industry leader well positioned to participate in the expected growth in the adoption of solar energy in China.
"While we expect to cover the whole country, this fund will focus particularly on utility-scale and distributed generation solar projects in Sichuan Province, China and other solar resourceful regions in the country."
Image: Sichuan, Canadian Solar and third party investors will raise a total of RMB5bn ($800m) to establish solar investment fund in China. Photo: courtesy of worradmu/Freedigitalphotos.net.
