China’s drive to consolidate its leading position in PV manufacturing has been reinforced with a credit facility offered to JinkoSolar from the Bank of China that could be worth approximately US$7.6 billion over a five-year period. According to a recent study by Mercom Capital Group, US$34 billion was provided by Chinese Government Banks to China-based solar companies last year, in which key beneficiaries were LDK Solar, Yingli Green, JA Solar, Suntech and Trina Solar.
JinkoSolar’s credit facility is also significant as the PV manufacturer is much smaller by capacity and revenue than the likes of LDK Solar and Yingli Green. The largest single transaction last year was the US$8.9 billion credit facility to LDK Solar, offered by the China Development Bank.
“Following the successful registration of RMB600 million financing bonds with Industrial Bank, our strategic agreement with BOC reiterates JinkoSolar's successes and strong financial performance and highlights the confidence of Chinese financial institutions in our ability to continue delivering positive results,” noted Mr. Longgen Zhang, CFO of JinkoSolar. “With the long-term financial support of BOC, we are confident we will deliver excellent results in 2011 as well as meet our long-term growth targets.”
JinkSolar had recently guided that 2010 revenues would be in the range of US$638-US$648 million, as its production capacity reached its targets of 600MW of production capacity in wafers, cells, and modules each.
However, the company has yet to guide capacity and revenue expectations this year. The signing of an agreement with BOC suggests that JinkoSolar will follow others in expanding capacity aggressively in 2011.