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Taiwan’s Neo Solar targets $100m fundraise for US projects

The solar module maker has seeded a new company with $44m, aiming to invest in solar assets outside of the island.

Neo Solar is looking to raise $100 million from external investors to fund the development of a new independent power production company targeting overseas solar projects. 

The Taiwanese solar panel maker has invested $44 million in Clean Focus Yield, a project company that aims to build a portfolio of 300MW to 400MW of solar projects with a focus on the US. Clean Focus GP, an investment management company, has also been set up by Neo Solar with $4 million of investment to manage CFY. 

A Neo Solar spokesperson told Infrastructure Investor that the company is in talks with hedge funds and family offices from overseas that could potentially invest in CFY. Neo Solar expects to hold an approximate 30 percent stake in the company once the fundraise completes. It also has plans to list CFY on the Hong Kong Stock Exchange in the longer term.

The company believed investing in solar farms could help it generate long-term, stable cash flows, diversify its revenue sources, and help the company export its products. It is also working with its downstream subsidiary General Energy Solutions to develop a pipeline of projects totalling 800MW across the US, Japan and Taiwan. 

Neo Solar announced in August that it had teamed up with Cathay Life, the largest insurance company on the island, to set up a NT$3.5 billion ($111 million; €100 million) joint venture investing in domestic solar farms. The JV establishment is currently at the stage of documentation, according to the Neo Solar spokesperson.