Sky Solar receives $1.6 billion credit facility from CDB

The Chinese photovoltaic company announced today, October 24 that it has entered into a Developing & Financing Cooperation Agreement with the Shanghai Branch of CDB.

A credit facility worth RMB 10 billion (around US$1.6 billion, €1.2 billion) has been made available to Sky Solar between 2012 and 2016 for its project development, construction and asset management activities.

Amy Zhang, CEO of Sky Solar Holdings Co., Ltd, commented, "Sky Solar has been working with CDB in the project financing areas in the past two years. Signing this agreement symbolizes the beginning of China’s state owned financial institutions offering credit facilities to downstream independent PV developers, investors and IPP’s."

She added, "Investing in the upstream only creates production, whilst investing in the downstream increases demand for production and creates highly feasible and stable assets therefore driving capacity and ensuring a safer and more innovative use of capital. This is a significant and important step forward! By supporting downstream developers and operators, CDB and it’s [sic] Shanghai Branch have helped established new international and domestic markets for PV manufacturers currently facing huge pressure due to the current over-supply situation."

Sky Solar did not mention any specific projects it is planning to develop with the credit. However, in the past months, it has unveiled a number of photovoltaic plans, both in its domestic market, and internationally.

In China, for example, the company has recently broken ground on a 50 MW project in Gonghe County, Hainan Tibetan Autonomous Prefecture, Qinghai; started construction on the first 60 MW phase of an 800 MW project in Xinjiang province; and established a new company with Sinoma International Engineering Co., Ltd in Beijing to roll out around one GW of photovoltaic projects worth RMB 30 million in the next three years.

Meanwhile, in Japan, Sky Solar Japan announced it intends to invest $7.67 million developing photovoltaic plants, worth two MW each, in up to 20 areas of the country; and in Chile, it has said it will invest $900 million in installing 300 MW worth of plants.

Sky Solar’s MD of South America, Hong Chen told pv magazine that the company will distribute its 300 MW pipeline over a number of different projects, which are expected to come online within the next two to three years. The company is working with several local partners, including Sigdo Koppers, to realize its plans.

Hong said the company hopes to begin construction on the first 20 MW this year, and estimates that $3 million will be invested per MW. Sky Solar is also currently setting up a local office in Chile.