The two companies plan to raise a total of RMB 5 billion, or $810 million, for investment fund which will finance the development, construction, and ownership of solar power projects in China. The fund will focus on "utility-scale and distributed generation solar projects in Sichuan Province, China and other solar resourceful regions in the country," Canadian Solar chairman and CEO Shawn Qu said in a statement.
"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," Qu said.
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TheStreet Ratings team rates CANADIAN SOLAR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CANADIAN SOLAR INC (CSIQ) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."