SunEdison to initiate first ‘yieldco’ PV project investment vehicle

Major PV energy provider (PVEP), SunEdison, has submitted its first draft registration statement to establish a 'yieldco' financial vehicle.

The company had previously said that such financial instruments would be used to gain access to low-cost finance to support its target of doubling PV project installations in 2014.

SunEdison said that it had submitted documents to the Securities and Exchange Commission (SEC) relating to a proposed initial public offering of common stock of a yieldco vehicle.

The yieldco vehicle would include PV power plant projects build and owned by the company that have power purchase agreements or other long-term revenue streams bundled into an investment offering that would guarantee investors regular interest payments over the course of around a 20-year period.

The IRR of the yieldco would be in the range of 6% per annum or higher due to the low-risk investment conditions now granted to PV power plants.
The SEC is expected to review SunEdison’s registration before the public offering can be made, though timelines were not disclosed.