Large-scale PV project development continues apace in China, with the latest agreement seeing Trina partner with an insurance asset manager and venture capital investor to develop a pipeline of projects in China totally hundreds of MW. Trinas partners under the framework agreement are an investment subsidiary of the PingAn Insurance Company and venture capitalist Jiangsu Jiuzhou Investment Group.
Jiuzhou Investment was a first round investor in Trina Solar prior to its IPO.
Under the agreement framework the Trinas investment partners will enter into a convertible loan agreement, whereby the investment provided can be converted into minority stakes in the projects once they are completed.
The investors will provide bridging finance for the projects during construction, on the completion of due diligence. The projects, developed by Trina downstream subsidiary Jiangsu Trina Solar Power Investment & Development Co., are not prevented from applying for downstream loans to realize the projects under the deal.
"We are excited to partner with strategic investors such as PingAn Trust and Jiuzhou Investment," said Jifan Gao, Chairman and Chief Executive Officer of Trina Solar. "By leveraging their financial strengths with our proven expertise in manufacturing and power plant development, we have a unique ability to build a superior and professional downstream development and operation company."
Trinas Gao noted that Chinas installed PV capacity will reach 100 GW by 2020, in accordance with government plans. Given this growth, pv magazine has reported that Chinese investors are becoming increasingly comfortable with solar as an investment class.
"China is now in a new era of energy reform as it looks to promote green energy including solar energy production and consumption, said Shijin Luo, President of Jiuzhou Investment. We view Trina as a trusted partner for our move into the solar energy business."
Trina Solar posted 12.5% increase in revenues in Q3 2014, registering 7% increase in net profits totaling $10.6 million.