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.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
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.
