JinkoSolar sells 45% stake in downstream unit for $225 million

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JinkoSolar has sold a 45% stake in its downstream unit JinkoSolar Power Engineering Group Limited (also known as Jinko Power) to China Development Bank International (CDBI), the Macquarie Greater China Infrastructure Fund (MGCIF) and New Horizon Capital for $225 million.

With new investors on board, JinkoSolar is planning to spin off and list the company.

Jinko Power entered into individual share purchase agreements with the three investors. CDBI, MGCIF and New Horizon invested a combined $225 million in the company, which develops and operates JinkoSolar’s downstream solar power project business, in exchange for an approximate 45% of its equity interest.

JinkoPower also received an unspecified capital injection from JinkoSolar.

The group said CDBI, MGCIF — a fund managed by Macquarie Infrastructure and Real Assets — and New Horizon would provide support and additional resources to facilitate Jinko Power’s spin off and listing as well as to downstream business development in terms of project financing, development and operation.

Jinko Power last month sealed a lucrative deal to develop a $260 million, 200 MW PV project in China’s Jiangxi province.