Zhejiang JinkoSolar Co., Ltd., a subsidiary of JinkoSolar Holding Co., Ltd. (JKS), inked an agreement to obtain a working capital loan from China Development Bank. Per the agreement, the company will get a $90-million loan for a tenure of one year.
Zhejiang JinkoSolar will utilize the fund to run its day-to-day operations. China Development Bank has disbursed the initial $50 million of the loan to the firm.
JinkoSolar has prior experience of working with China Development Bank. In Apr 2014, the company entered into a loan agreement, worth nearly $39 million, with the bank. The objective of the deal was to finance two of JinkoSolar’s photovoltaic (PV) solar ventures in Xinjiang and Gansu provinces, China.
JinkoSolar also has business alliances with several other domestic and international financial institutions, including China Minsheng Banking Corp., Ltd. and Wells Fargo Bank, National Association. It obtains assistance from these institutions to meet fund requirements for various purposes.
China remains the hotbed for solar power consumption followed by other major solar markets like the U.S., Japan, Germany and Canada. In 2014, the National Energy Administration of China instructed the local administrations to shift focus to distributed generation, rooftop installation, reforms and feed-in-tariffs, and offer additional financial incentives and fast-track connections.
JinkoSolar continues to expand its operations in China in an attempt to take advantage of the anticipated increase in demand for solar products and services. In 2014, the company completed several vital projects, including the 100-MW Xiangshui and 24-MW Xinyi project in the Jiangsu region, China.
JinkoSolar maintains a stable order book from domestic customers. In the third quarter of 2014, JinkoSolar’s revenues benefited from higher shipments to China. On Dec 12, 2014, the company delivered 80 MW of solar PV modules to China General Nuclear Power Group for its solar PV project in Henan Province, China.
Apart from JinkoSolar, ReneSola Ltd. (SOL) and Yingli Green Energy Holding Co. Ltd. (YGE) are focused on expanding their presence in China.
JinkoSolar currently holds a Zacks Rank #3 (Hold). A better-ranked stock in the same sector is JA Solar Holdings Co., Ltd. (JASO), carrying a Zacks Rank #1 (Strong Buy).
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