Chinese poly maker lands $133m bank finance

Chinese polysilicon maker Daqo New Energy has received a new RMB825 million ($133 million) shot in the arm from the local bank in its Chongqing province.

A report yesterday (Thursday) run by the PR Newswire service, revealed the Chongqing Rural Commercial Bank has extended the poly maker and project developer a six-year, RMB625 million ($100 million) project financing loan as well as a one-year, RMB200 million ($33 million) loan facility.

The report quoted Daqo CEO Dr Gongda Yao as indicating the credit line will be used for his company’s "next phase of polysilicon expansion."

In common with most Chinese stocks, Daqo‘s share price has endured a rough ride in recent months, prompting the Chinese government to intervene to shore up plunging market values.

From a 12-month high of $48.18 in September, Daqo shares yesterday closed at $20.96.