ReneSola has completely constructed two solar PV projects in Bulgaria and has sold both of them to Solar World Invest Fund SIF (SWIF), a Luxembourg-based private equity fund with investments in medium-sized solar installations around the world.
The two utility-scale projects are respectively 5MW and 4.7MW, and are located in Sliven. The sale represents ReneSola’s strategy to transform into a downstream developer.
"Our Nove ECO and MG Solar power stations have produced attractive cash flows for us since their completions in the summer of 2012," said Mr. Xianshou Li, ReneSola's chief executive officer. "Our current project development strategy is to build and transfer select projects in order to enhance our cash flow and pay down debt.”
Li pointed that the company is looking forward to monetize more of its solar pipeline, up to 641MW, this year.
However, the two sales will be booked as disposal of assets that has no direct impact to the ReneSola’s revenue because both of them were deemed as long-term assets on the balance sheet since end of 2013. The transaction consideration is a combination of cash and assumption of project debt. Such structure of the transaction consideration reflects the ReneSola’s focus to reduce its debt.
