In the latest demonstration of China’s determination to become a major player in the global wind power market, China Investment Corporation (CIC) has proposed to acquire a 15% equity interest in AES Corporation.

The sovereign wealth fund is making a US$1.58bn investment through a wholly-owned subsidiary in AES Corporation (AES).

Led by Beijing-based partner Filip Moerman and New York-based partners Richard Lincer and Paul Shim, Cleary Gottlieb is advising CIC on the proposed acquisition. The firm has been CIC’s long-term advisor for US-related deals.

According to the investment agreement, CIC will nominate one director to the AES board. CIC has also signed a letter of intent with AES to invest an additional US$571m for an approximate 35% interest in the wind business of the corporation.

CIC has received legal advice from a range of other international firms on its array of investments. Earlier this year, for example, it turned to Torys, a firm with 300 legal professionals and two offices in Toronto and New York, for advice on its US$1.5bn investment in Teck Resources.

The fund has continued to raise eyebrows with its active large-scale investments in many different regions. Recently, CIC bought an 11% stake in Kazakhstan-based JSC KazMunaiGas for US$939m, and also invested US$300m in Russian Nobel Oil Group.

CIC investments and advisors – 2009

• CIC turns to Vinson & Elkins for Kazakhstan encounter
• CIC commodity spree continues