Bookmark and Share

Chinese Billions boosting Chinese Solar Companies, as CDB gives 10 billion Yuan to Startup Sky Solar

0 Comment

China’s CDB to give 10 billion Yuan to Sky Solar

Cheap capital is one of the strongest competitive advantages for a solar developer given the capital intensity of a big solar project where a 1% difference in interest rates can change the IRR of a solar project quite dramatically. Chinese solar companies have benefited in the past from the largesse of Chinese state owned banks who have given huge amounts of loans despite the overcapacity in the industry (in fact these massive loans are one of the biggest reasons for the current industry travails right now). Now an upstart Shanghai based solar developer Sky Solar is set to receive a giant 10 billion yuan loan from the Chinese government owned CDB. Note CDB was founded mainly to further the interests of the Chinese government by providing capital to strategic industries.

Sky Solar was started in 2009 according to its website with its top management being associated with Suntech and Yingli Solar. The current CEO of Sky Solar is the ex-CFO of Suntech which is currently facing bankruptcy. Sky Solar has invested in solar projects in a number of countries like Japan, Bulgaria etc. The company is setting up a 60 MW plant in a Chinese province as well. The company has also announced plans to set up a massive solar farm in Chile through an investment of $900 million.

From a nothing to one of the biggest solar developers in 3 years would be an astonishing achievement elsewhere but thanks to China’s state run capitalism model it is a common thing in China. If you can get your hands of the Chinese government billions you can aspire to be the No.1, in almost any commodity industry without requiring much expertise or hard work.

Also Read on GWI China Solar Booming.

Sky News

Sky Solar, a Shanghai-headquartered IPP, developer and investor with PV as its core business, announced that over the next four years China Development Bank Corp. (hereinafter referred to as CDB) granted a credit facility worth 10 billion RMB. Sky Solar Holdings Co., Ltd. entered into the Developing & Financing Cooperation Agreement with the Shanghai Branch of CDB.

Under the agreement, between 2012 to 2016 the total financing volume of the various financial products is estimated at 10 billion RMB (or the equivalent in other currencies). CDB is one of China’s key financial institutions, using their large-scale, long-term and stable fund resources, high credit rating and their significant presence in foreign markets to provide Sky Solar with a full array of financial products and services. These include but are not limited to various forms such as equity, debts, loans, leasing, bonds, securities, etc. CDB will also provide priority financing support in relation to project development, project construction and asset management.

Miss Zhang Yi, CEO of Sky Solar, Miss Guo Mingshe, Planning Director for China Development Bank and Mr. Christian Brinck, President of Sigdo Koppers represented the three partner institutions and signed a cooperation framework agreement for the investment and construction of 300MW of solar photovoltaic power plant projects in Chile with a total investment of US$900 million. This collaboration formally begins the start of grid-parity solar PV projects in South-America.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

No Responses so far | Have Your Say!