JinkoSolar has signed a five-year CNY 1 billion ($161.2 million) financing agreement with China Minsheng Banking Corp. (CMBC).
As part of the wide-ranging deal, CMBC’s financial services will include merger and acquisition financing, supply chain financing, bridge loans, letters of guarantee, trade financing and project financing, particularly for distributed PV projects.
JinkoSolar said the credit line will further enhance the company’s leading position in the development of solar PV infrastructure in China.
CMBC will initially provide a CNY 88.8 million ($14.3 million) project loan for a 20 MW distributed PV project in Haining Hi-tech Park, Zhejiang Province. The project has already been submitted and approved by the National Development and Reform Commission.
Constructed on the roof-tops of adjacent offices and production facilities, the project will cover an area of 234,000 square meters. The surrounding businesses will use the generated power, with residual electricity fed back into the grid. JinkoSolar plans to replicate the financing model with three separate 20 MW distributed PV projects located in Zhejiang’s Jiaxing City.
"As a global leader in the solar PV industry, we are extremely excited to have the opportunity to build a new strategic partnership with China Minsheng Bank," said JinkoSolar Chairman Xiande Li. "Distributed PV generation systems represent the future for the Chinese market, but its development over the past few years has been hampered by financing difficulties."
Li added that the financing deal represented "a new era in the financing of distributed generation projects for JinkoSolar."
The chairman said JinkoSolar looked forward to deepening its relationship with CMBC and working with the bank on its strong pipeline of projects, adding that the collaboration would serve as an example for future distributed generation project financing agreements in China.