Chinese PV manufacturer Chaori Solar has become China’s first firm to default on a domestic bond after missing an interest repayment.
Earlier this week Shanghai Chaori Solar Energy Science and Technology warned it would be able to meet only a fraction of the CNY89 million (US$14.5 million) repayment on the CNY1 billion (US$163 million) bond issued in 2012.
According to numerous media outlets, including the BBC and Reuters, the default has now been confirmed, with the BBC reporting the company is planning to meet only CNY4 million (US$654,000) of the expected repayment.
The rapid growth of Chinese PV companies was brought to a halt last year when high profile names including Suntech and LDK Solar defaulted on overseas bonds.
With Chaori now joining this list, it seems likely further consolidation in the Chinese PV industry will happen, particularly with the Chinese government having already indicated that it wants to curb wider oversupply in the republic’s PV manufacturing sector.
In December it excluded around 80% of the country’s operating PV supply chain manufacturers from a list of 109 companies that would continue to receive domestic support measures.
Chaori is one of the companies on this list, but its fate remains unclear.