A subsidiary of Chinese solar photovoltaic solutions company JinkoSolar has signed a $150-million loan agreement with Credit Suisse and several other financial institutions. The funds are to be used to expand the portfolio of the subsidiary JinkoSolar Power Engineering Group in China.
The company reports that the funds would be adequate to expand capacity of JinkoSolar by 1.4 gigawatts. Credit Suisse acted as the sole arranger and led the consortium of investors in the financing.
According to a statement, the loan agreement provides 18-month senior secured term loan to Jinko Power.
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“The lenders will be granted warrants, which represent no more than approximately 2 percent of Jinko Power’s equity on a fully distributed basis, subject to their terms and conditions,” the statement adds.
Last month, JinkoSolar (US) got its credit limit with Wells Fargo Bank, National Association, raised from $20 million to $40 million under new terms of credit agreement.
“Raising our credit limit indicates Wells Fargo’s recognition and confidence in JinkoSolar’s financial position,” Charlie Cao, the chief financial officer of JinkoSolar said in a statement.
“As one of the most active financial institutions in US PV investment, Wells Fargo has very strict requirements for the debtors’ financial position. We are expanding our business in the US and are determined to further expand our overseas financing channels going forward,” Charlie added.
Ajith Kumar S