United PV receives $1.5bn in financing, finds Hareon in contract breach

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CITIC Leasing has made an up to RMB 10 billion (around $1.5 billion) credit line available to United PV and its parent company, CMNE. The funds will be invested in solar PV projects across China. No further details were shared.

Contract breach

In other United PV news, the company is seeking HK$500 million from Hareon Solar technology Co., reports Bloomberg, after the latter breached a 930 MW investment framework agreement, signed in May.

Under the terms, the solar PV projects were to be operational and grid connected by December 10. However, according to Xue Jiancong, director of public relations at CMNE, just 30 MW met the conditions on time.

In a statement to the Shanghai Stock Exchange on December 29, Hareon reportedly said some of the projects have met delivery conditions. A day prior to this, Reuters reported that Hareon chairman, Yang Huaijin, resigned due to personal reasons. Meanwhile, on December 21, the company announced it would halt trading "pending a major plan."

Last February, Hareon was investigated by China’s Securities Regulatory Commission due to its illegal information disclosure. If it posts a third consecutive loss in 2015, the company will be delisted.

United’s reach

In November, United PV acquired a 100 MW solar PV project from Hubei Jingtai Photovoltaics Power Company Limited for around US$134 million. Overall, the company said it was in the process of acquiring 45 solar PV plants in its domestic market worth around 2 GW.

A month prior to this, it announced its intentions to use crowdfunding for a second time, to raise capital following the Chinese stock market plunge earlier in 2015. Speaking to Bloomberg at the time, CEO Alan Li said the company planned to "distribute solar farms as bank products to thousands of households" through a concept of crowdfunding that would be "completed under the banking system."