China-based polysilicon manufacturer Daqo New Energy has received approval from Chongqing Rural Commercial Bank for RMB825 million (US$133 million) in loans.

The financing includes a six-year term project finance loan of RMB625 million and a one-year operating loan facility of RMB200 million.

Gongda Yao, chief executive of Daqo New Energy, said he was pleased to extend the company’s financial partnership with Chongqing Rural Commercial Bank.

He added: “This loan approval is an example of the strong support and capital commitment that Daqo New Energy is enjoying from domestic Chinese banks. Our strong advantage in the cost structure of polysilicon manufacturing has been increasingly recognized by domestic banks in China.

“In addition, these loans have competitive interest rates that are lower than the Company's 2014 weighted average interest rate. The additional capital provided by these loans will enhance our liquidity position, and afford us additional financial resources and the flexibility to plan the next phase of our polysilicon capacity expansion."