Continuing its impressive run of acquisitions, China Investment Corporation (CIC) has entered into an agreement to buy a 20% equity stake in China’s largest polysilicon producer, Hong Kong listed GCL-Poly. The US$709m agreement marks the fund’s very first domestic investment.

Although CIC’s long list of acquisitions over the past 12 months have been cross-border, this latest move has seen the sovereign giant turn its attention to closer to home.

Both parties have  entered an agreement to establish a JV that will specialise in photovoltaic or other solar energy projects. CIC will hold 49% of the JV’s shares and GCL-Poly will own the rest.

GCL-Poly will use CIC’s investement for general working capital, to repay borrowings and to explore new business opportunities.

Led by award winning China managing partner Teresa Ko, the Freshfields team is representing GCL-Poly in this transaction. Richards Butler in association with Reed Smith was hired as legal advisor for CIC.

GCL-Poly earlier this year acquired Jiangsu Zhongneng for US$3.4bn and was also represented by Freshfields and PRC legal advisor Grandall Legal Group.

The deal is subject to approval by GCL-Poly's shareholders. Once approved, CIC will have the right to nominate two directors to the GCL-Poly board.

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