Yingli gets $165m in CDB loans
Chinese PV equipment group Yingli has secured $165m in short-term finance from China Development Bank (CDB) – becoming the latest of the country’s solar majors to be backed by the state-owned lender.
CDB will provide a one-year, $110m loan and $55m in three-year credit, Yingli said in a statement.
New York-listed Yingli – the world’s largest supplier of PV modules in 2012, but with $2.5bn of debt on its books – will use the funds to buy raw materials and shore up its working capital.
Reports in China late last year suggested the CDB had been asked by the Chinese government to prioritise lending to a group of key players in the country’s solar sector, as part of an effort to drive consolidation and spur domestic demand.
Since then the CDB has extended various forms of financial support to companies including JinkoSolar, ReneSola and LDK Solar.
Support from state institutions is seen as a massive fall-back for Chinese PV groups amid more hostile credit conditions elsewhere.
This week, lenders recalled a €6.6m ($8.6m) outstanding credit facility for LDK Solar’s PV cell and inverter unit Sunways, due to concerns about the parent company.
Earlier this month, LDK followed Suntech to become the second major Chinese company to default on bond repayments, following the latter’s default on a $541m bond in March.