PVTIME - ReneSola Ltd ("ReneSola Power" or the "Company") (www.renesolapower.com) (NYSE: SOL) announced today that it signed a Memorandum of Understanding (MOU) with Eiffel Investment Group ("Eiffel") to establish a joint venture that will provide financing for ReneSola Power's current and future solar projects across Europe.
Under the terms of the MOU, ReneSola Power and Eiffel Investment Group will create a 51/49 joint venture company with ReneSola Power having a 51 percent ownership stake and Eiffel injecting new capital into the joint venture for a 49 percent ownership. The JV intends to develop up to 1 GW of solar projects in the next several years across Europe.
Mr. Josef Kastner, CEO of ReneSola European Region, commented, "We are excited to form a joint venture with Eiffel Investment Group, a long-term strategic partner and proven leader in business financing. Our industry requires efficient and scalable financing models to meet demand. We expect the joint venture to help facilitate the development of our existing pipeline of project opportunities and prospective projects that meet our development criteria."
Mr. Yumin Liu, ReneSola Power Chief Executive Officer, added, "We received a handful of offers across Europe and ultimately selected Eiffel for this partnership. The new joint venture clearly demonstrates Eiffel Investment Group's confidence in our ability to successfully develop and build projects in various target markets. Importantly, the joint venture fits well with our growth strategy, enabling us to further expand our project development activities across Europe and set a high standard for the sustainable development of the solar industry. "
Mr. Pierre-Antoine Machelon, Managing Director at Eiffel Investment Group, said, "We are very excited by this promising expansion of our partnership with ReneSola Power. This innovative transaction leverages their strong experience of PV development in Europe and our capacity to bring financial resources at the most critical stages of the projects' life cycles."
Eiffel Investment Group will make capital contributions to the joint venture as qualifying projects are constructed in the targeted markets of Europe. ReneSola Power will lead the project identification and development process. Both partners will then determine the best methodology to value the projects. Once constructed, the projects will be sold by the joint venture.
Germany-based Capcora served as financial advisor to ReneSola Power for the fundraising process, managing a structured bidding process, evaluating the pipeline and developing a suitable joint venture structure.