China Development Bank is to support PV module manufacturer, JinkoSolar with a US$1 billion, five-year financing deal.
The financing deal was said to support JinkoSolar to expand overseas including PV project development and EPC activities as well as support potential merger and acquisition strategies.
Shouguo Chang, Deputy President of China Development Bank, Guangdong Branch said: “As China's largest foreign investment and financing bank, China Development Bank has been implementing national development strategy and providing strong support to strategic plans and social development of the nation.”
Xiande Li, Chairman of JinkoSolar, added: “The agreement with CDB will provide numerous advantages to us, including a long-term, stable source of capital and a complete set of financial services and it will have a far-reaching impact as it demonstrates the confidence with which a leading PV enterprise and strong and respectable financial institution set upon changing the global renewable energy market.”
The deal was struck between JinkoSolar (Switzerland) AG, its Swiss subsidiary and the Guangdong Branch of China Development Bank. The two parties said they intend to establish a meeting mechanism to evaluate the progress of major development projects to be carried-out during the deal period.
Increasingly, many PV manufacturers are adding project development arms to their business modules as these offer higher margins than simply supplying modules for projects. However a key challenge has been in obtaining project financing to carry-out the strategy.