ReneSola Ltd, a fully integrated solar project developer and operator, has signed an exclusivity agreement with an affiliate of Brookfield Asset Management. Under the agreement, ReneSola has agreed to negotiate exclusively with Brookfield Asset Management to sell its distributed generation operating solar assets in China.
ReneSola has distributed generation operating solar assets with a total capacity of 206.8 MW in China. The negotiation will take place over a 60-day period.
Brookfield Asset Management intends to acquire the project-based special purpose vehicles (SPVs) associated with the 206.8 MW of distributed generation operating assets, which are owned by Zhejiang ReneSola Investment, ReneSola’s subsidiary that holds the company’s distributed generation projects in China.
Xianshou Li, Chairman and Chief Executive Officer of ReneSola, commented, “This transaction will substantially reduce the company’s leverage ratio and significantly improve cash flow and liquidity. After completing this transaction, the proceeds from the sale of the distributed generation operating assets will provide us with more resources and flexibility to deploy our capital.”
Li also added, “We continue to pursue opportunities to develop, build and monetize small-scale and DG projects in China and other geographies, and believe our strategy meets the development trend of solar energy.”
There is no assurance that ReneSola and Brookfield Asset Management will enter into a definitive agreement for a potential transaction and there is no assurance as to the form, terms or timing of any transaction even if an agreement is reached between the parties.
Mercom recently reported, Globeleq, an independent power producer and developer in Africa, is set to acquire Brookfield Asset Management’s interests in its South African renewable energy portfolio. The agreement is subject to various closing conditions and once fulfilled, will give Globeleq a majority shareholding in six renewable projects totaling 178 MW, as well as ownership in Brookfield’s South African asset management company.