JinkoSolar Holding Co., Ltd. JKS inked an agreement to obtain financing support, worth RMB 3 billion, from China Minsheng Banking Corp., Ltd. ("CMBC") for a tenure of five years. Per the agreement, the company will get project finance, merger and acquisition finance, supply chain finance, bridge loans, letters of guarantee and allied trade finance. In addition, JinkoSolar will also obtain working capital finance and foreign currency cash pool management for its domestic and foreign subsidiaries from CMBC.
The latest funding will allow the company to expand its manufacturing capacities and strengthen presence in the downstream solar project division besides enhancing financing channels.
JinkoSolar has had prior experience of working with CMBC. In July 2014, the company had signed another five-year strategic financing agreement, worth RMB 1 billion, with the bank. CMBC had agreed to disburse the initial RMB 88.8 million project loan for a 20-megawatt (“MW”) distributed solar photovoltaic (PV) project in Haining Hi-tech Park, Zhejiang Province, China.
JinkoSolar also has business alliances with several other domestic and international financial institutions, including China Development Bank and Wells Fargo Bank, National Association. The company obtains assistance from these institutions to meet its fund requirements.
China remains a focus area for future growth of solar power consumption followed by the U.S., Japan, Germany and Canada. In Feb 2015, China’s National Energy Administration (“NEA”) stated its target of solar PV installation for 2015, which includes the addition of centralized 8-gigawatt (“GW”) PV power plants and 7-GW distributed PV generations.
JinkoSolar continues to expand its operations in China in an attempt to capitalize on the projected increase in solar products and services. The company maintains a stable order book from domestic customers and completed several vital projects in 2014, including the 100-MW Xiangshui and 24-MW Xinyi projects in the Jiangsu region, China.
Apart from JinkoSolar, other players in the same space ReneSola Ltd. SOL and Yingli Green Energy Holding Co. Ltd. YGE are equally focused on increasing their operations in China.
JinkoSolar currently holds a Zacks Rank #4 (Sell). A better-ranked stock in the same sector is JA Solar Holdings Co., Ltd. JASO, carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment