JinkoSolar secures $225 million investment for downstream business

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JinkoSolar has secured a $225 million investment in its downstream solar power project business from China Development Bank International (CDBI), the Macquarie Greater China Infrastructure Fund (MGCIF) and New Horizon Capital.

Specifically, the three companies have signed separate share purchase agreements with JinkoSolar’s downstream project division Jinko Power. As part of the deal, CDBI, Macquarie and New Horizon will invest $225 million in Jinko Power in return for approximately 45% of the subsidiary’s equity interest.

While the investment by the Macquarie fund, operated by Macquarie Infrastructure and Real Assets, has closed, JinkoSolar expects the CDBI and New Horizon deals to close in the near future (upon satisfaction of customary closing conditions).

The three investors are expected to provide support and additional resources to boost Jinko Power’s business development, in terms of project financing, development and operation.

"We are very pleased to welcome CDBI, MGCIF and New Horizon as partners in our downstream business,"said JinkoSolar Chairman Xiande Li. "They will not only contribute capital to further expand our project development capabilities, but will also provide a wide range of support to drive future growth."

Li added that the investment was "another vote of confidence in our team and the long-term prospects of our downstream business."

The chairman pointed out that China’s solar power market had "a well-established regulatory framework" and was currently in a phase of rapid growth.

"CDBI’s investment demonstrates the growing interest from domestic Chinese capital in the solar power project sector," Li added. "We also expect MGCIF to help us further tap into the global solar power market through the Macquarie Group’s global resources and network. This round of investment marks an important milestone in our effort to spin off and list our downstream business."

In view of the new partnerships, Li said the company was revising its full-year 2014 project development guidance upwards from 400 MW to above 600 MW.

"Our downstream capacity will exceed 800 MW by end 2014. Looking forward, we intend to continue taking full advantage of our leading position in the Chinese solar power infrastructure sector to further grow our downstream business."

JinkoSolar earlier this month signed a five-year CNY 1 billion ($161.2 million) financing agreement with China Minsheng Banking Corp. (CMBC). As part of that wide-ranging deal, the company will receive merger and acquisition financing, supply chain financing, bridge loans, letters of guarantee, trade financing and project financing, particularly for distributed PV projects.