SunEdison swells sale-leaseback fund

De Lage Landen Financial Services (DLL), a Rabobank subsidiary, has doubled the size of a sale-leaseback fund available to SunEdison, as the US-based PV group continues to swell its downstream assets.

Last December DLL committed $52.5m to the fund, which effectively allows SunEdison to enter into long-term power-purchase agreements with the owners of distributed PV systems in the US, taking many of the tax benefits and long-term cash flows for itself.

Today SunEdison announced that the fund will grow to $100m, with all of the money expected to be committed to projects by the end of the year.

SunEdison, which manufactures PV components in addition to its increasingly aggressive downstream development arm, has in the past sold off many of the generation assets it assets.

However, chief executive Ahmad Chatila has made clear that the company will increasingly hold onto high-margin generation assets or spin them off into a separate vehicle.  

“We believe the solar financing market is about to reach a significant inflection point, and that this near-term shift in financing costs will drive significant value creation for the industry,” said Chatila when discussing SunEdison’s most recently quarterly results.

As it evolves its business model towards more downstream solar development and EPC work, SunEdison is looking to build up its war chest – including a plan to spin-off its long-standing semiconductor unit in a $250m initial public offering early next year.

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