US renewable energy firm SunEdison has formed a $1 billion (£0.6bn) fund to buy operating assets.

Called WSIP Warehouse, it will also be used for construction costs and managed by bank Goldman Sachs.

TerraForm Power will own exclusive call rights of the renewable projects.

Debt structuring will be led by Morgan Stanley, Bank of America and Deutsche Bank and will provide $700 million (£447m) for debt.

Brian Wuebbels, Chief Financial Officer at SunEdison, said: “The warehouse provides incremental capacity for SunEdison to construct and hold assets in advance of drop down to TerraForm Power.

“It expands our capacity beyond our existing $1.5 billion (£1bn) First Reserve Warehouse and the $500 million (£319m) TerraForm Private Warehouse.”

The company added it continues to explore financing alternatives, including expansion of its warehouse facilities.

“Completion of the formation of the WSIP Warehouse and the financial close of the related debt facilities are subject to customary conditions and are expected to occur by October 31, 2015,” it added.