Yingli Green Energy Holding Company Limited announced that its principal operating subsidiary, Baoding Tianwei Yingli, has signed a supplemental long term credit facility agreement (supplemental agreement) with Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), Netherlands Development Finance Company (FMO) and The Société de Promotion et de Participation pour la Coopération Economique (PROPARCO). The supplemental agreement comes after the original five-year US$50 million credit facility agreement was signed with DEG and FMO in September 2008; PROPARCO is now lending the group a further $25 million credit.
“We are pleased to announce this agreement with DEG, FMO and PROPARCO,” stated Mr. Zongwei Li, Chief Financial Officer of Yingli Green Energy. “Despite a backdrop of a tight credit market and global financial turmoil, we were able to secure a significant expansion of our existing credit facility with DEG and FMO, which we believe demonstrates PROPARCO’s confidence in our business and leadership position in the solar industry, as well as our status as a good corporate citizen. Securing additional long-term credit with this supplemental agreement, we have enhanced our debt structure by enabling us to shift to longer term indebtedness and further strengthened our ability to execute our business plan in these tough times.”
The supplemental agreement keeps the duration of the loan to five years with an interest rate of LIBOR plus 3.0%. All other significant terms have remained unchanged from the original agreement.
