Chinese solar module manufacturer JinkoSolar has secured RMB3 billion ($479 million) in financing from China Minsheng Bank in a five-year deal that will support the companys expansion goals.
The agreement follows almost one year since the two entities agreed a RMB 1 billion ($161 million) deal, with this latest collaboration designed to strengthen JinkoSolars downstream development and bolster its manufacturing capabilities.
According to JinkoSolar, the financial services on offer to them over the course of the five year deal will also include project finance, merger and acquisition finance, supply chain finance, bridge loans, letters of guarantee and related trade finance.
China Minsheng Bank will also release funds to support JinkoSolars overseas plans, including foreign currency cash reserves and working capital finance.
"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.
"This strategic financing agreement with one of Chinas premier commercial banks demonstrates the confidence we both have in the future downstream business and in particular DG projects, as well as our manufacturing business."
Earlier this week, JinkoSolar published a positive set of financial results for 2014, revealing soaring net profit of more than $100 million and a 50% increase in earnings in the final quarter as solar module shipments powered the company’s bottom line.
Over the course of 2014 JinkoSolar shipped close to 3 GW of solar modules, of which one third were shipped in the fourth quarter of the year. The companys growing downstream business accounted for 339.1 MW of that total, driving a 68.6% revenue increase for the sector.
Such is the strength of its downstream efforts, JinkoSolar is looking to spin off its Jinko Power unit into a separate, listed company.