Yingli Green Energy Holding Company is awaiting approval for 36 billion yuan ($5.29 billion) in loans from China Development Bank as the company tries to drive up production.
The global solar photovoltaic manufacturer said it will use the funding to expand its domestic and overseas solar production.
Yingli Green Energy, which sells solar products under its Yingli Solar brand, recently signed a strategic cooperation agreement with the Hebei branch of the government-owned development bank through its affiliate Yingli Group Company.
“This agreement raised [the] two parties’ cooperation to a new level, which we believe will give us the ability to pursue opportunities that will allow us to strengthen our leadership position in the photovoltaic industry,” said Zongwei Li, Yingli Green Energy’s chief financial officer.
The development bank has yet to complete its risk management assessment for the loan. Accordingly, the terms for the credit line have yet to be negotiated.
Once approved, the funding would benefit recipients including Yingli Group and its affiliates and three China-based Yingli Green subsidiaries – Baoding Tianwei Yingli New Energy Resources, Yingli Energy China Company Limited and Fine Silicon Company Limited.
Yingli Green Energy (NYSE:
) is one of the world’s largest PV manufacturers. It specializes in ingot casting, wafering and module assembly. In 2009, the company earned $1.062 billion in revenues.
The company’s 300-megawatt monocrystalline silicon manufacturing plant at its Baoding, Hebei headquarters and another 100-MW multicrystalline plant in Haikou, Hainan province have started operations this month. These will bring Yingli’s total production capacity to 1 gigawatt by the end of the third quarter, the company said.
Yingli Green’s project portfolio includes photovoltaic markets of Germany, Spain, Italy, Greece, France, South Korea, the United States and China.
Yingli Green Energy was trading at $12.40, up 17.2 since the previous week.