Chinese vertically integrated solar company Trina Solar has announced today a financing deal with CITIC worth RMB10 billion (US$1.57 billion).
The strategic cooperative financing arrangement will steer RMB5 billion (approximately $760 million) in funds towards Trinas ongoing equipment upgrade plans and downstream activities. Financing for these operations comes via CITIC Financial Leasing under a five-year agreement.
A second agreement, struck with CITIC Bank Corporation Limited Changzhou Branch, is for a three-year strategic cooperation agreement in the form of a further RMB5 billion in short-, medium- and long-term loans. This arrangement also includes access to foreign currency loans to help support Trinas overseas objectives.
Trina Solar CFO Teresa Tan said that the strategic partnership with CITIC will help fuel the companys global growth and optimize its capital structure, adding that the deal is a demonstration of CITICs continued confidence in Trinas current business model and future prospects.
"The two cooperation agreements not only allow us access to CITICs diverse financing resources and experienced professional services, but also enable CITIC to access Trinas established industry network and participate in our strong growth," the CFO said.
Tan also revealed that Trina will continue to pursue and secure all necessary funding that will enable the company to execute its growth strategy.
Earlier this week Trina announced a management reshuffle triggered by its growth plans in Europe and Africa. The restructuring saw former Trina Solar Europe president Ben Hill leave the company to be replaced by RongFang Win as regional head of Module Business Unit in Europe and Africa.
Trinas 2015 has seen the company hit record revenue figures for quarters one and two, and the company has also begun exploring the possibility of launching a yieldco in order to spin-off its growing downstream assets.