China’s state-run lender to pump $324 mln into Yingli Solar
Yingli Green Energy Holding Co. (YGE), a Chinese solar-module maker, has a “framework agreement” for USD324 million of China Development Bank funding for a so-called trade platform in Hong Kong used to import raw materials, according to Bloomberg.
The state-run lender will provide 150 million yuan (USD24 million) and USD300 million, Yingli said in an e-mailed statement yesterday.
The platform will help Yingli reduce foreign-exchange and financing costs, it said. Yingli bought about 17 percent of raw materials through Hong Kong in 2011 and the proportion will probably surge to 40 percent this year, the company said.
China Development Bank has offered at least USD47 billion in credit lines to help China’s solar- and wind-energy companies since 2010. The support drew complaints from US producers led by Solarworld AG that have sought duties on Chinese companies accused of using cheap funds from state lenders to sell solar panels on Western markets below the cost of production.
“It’s just a framework agreement,” Miao Qing, director of investor relations at Yingli, told Bloomberg in a telephone interview. “Yingli borrowed little from a USD5.6 billion credit-line deal signed in 2010.”