Tier-one PV module manufacturer JinkoSolar has signed a five-year strategic financing agreement worth RMB3 billion (US$479m) with China Minsheng Bank (CMBC).
Under the terms of the agreement, CMBC will provide financing support up to RMB3 billion over the five-year period to help expand JinkoSolar’s financing channels.
The solar PV giant intends to use the finance to strengthen its development of downstream solar projects and bolster its manufacturing capabilities, and CMBC’s financial services are also expected to include M&A finance, supply chain finance, bridge loans, letter of guarantee and related trade finance.
The agreement will also cover working capital finance and foreign currency cash pool management for both Jinko’s domestic and overseas subsidiaries, which the company said would allow it to optimise its debt structure and reduce its financial costs.
JinkoSolar chairman Xiande Li said the company would leverage the financing to “create new opportunities… that will yield sustainable and long-term value for our shareholders”.
“This strategic financing agreement with one of China's premier commercial banks demonstrates the confidence we both have in the future development of the global PV industry,” Li added.
Earlier this week JinkoSolar reported that its module shipments rose 65% to a record 2.9GW in 2014, meeting the lower end of previously issued guidance of between 2.9GW and 3.2GW.