Shunfeng secures credit facility

A unit of Chinese wafer, cell and module manufacturer Shunfeng Photovoltaic has secured a three-year revolving integrated credit facility of up to 2 billion yuan ($322.9m) from China Merchants Bank.

The group is expected to use the credit facility for fixed-asset loans, credit financing and financial guarantees, so it can improve its ability to develop and build more PV plants. However, it did not disclose specific plans.

In a separate statement to the Hong Kong stock exchange, it also unveiled plans this week to invest up to ¥7.5bn ($73.8m) in an undisclosed private equity fund that is preparing to develop 100MW of solar capacity in Japan.

Shunfeng, which plans to partner with the Cayman Islands exempted limited company for up to 10 years, said it will continue to consider other solar investments in foreign markets.

It also said that it expects to record a net profit for the six months to the end of June, from a net loss in the first half of 2013.

It attributed this “significant improvement”in its preliminary results to a number of factors, including a jump in first-half shipments and its recent acquisition of Wuxi Suntech.

It expects to release its earnings for the six months to 30 June by the end of August.

The company,which has become a major solar panel supplier since the Wuxi Suntech acquisition, unveiled plans in May to issue HK$6bn ($770m) of new shares to raise funds to support the development of PV projects and its EPC business.