GoldPoly,SunOasis,CTDC to invest $10 billion in European Solar Projects using Cheap Financing from China Development Bank and Merchants Bank

GoldPoly,SunOasis,China Technology Development Group Corp have formed a JV to invest $10 billion in European Solar Projects using Financing from China Development Bank and Merchants Bank.Note these 3 companies have integrated facilities from processing of polysilicon into wafers to making solar panels.Its the first time that 3 Chinese companies have combined to promote such a massive project.The 3 companies are not listed in the US stock or HK stock exchange unlike other major Chinese solar companies like Trina,GCL,Suntech,LDK and others.Note China Development Bank (CDB) which is owned by the Chinese government has already extended billions of dollars in credit to Chinese solar panel companies like JA Solar,LDK and others.

Solar Energy depends largely on project financing as like nuclear,hydro,wind energy most of the cost is in initial capital investment.Large solar projects typically have 80% debt component,bank financing is essential.Note Chinese Bank Financing has been instrumental in Chinese telecom and power equipment companies winning multi billion projects around the world.The US Exim Bank has also been trying to promote US Renewable Energy exports through cheap vendor financing.China Solar has been Booming as the cheapest solar manufacturers are from that country.This $10 billion financing should further increase the global marketshare of Chinese solar producers which is already more than 50%.

Note currently the global solar market is suffering from a glut of crystalline silicon panels which has led to sharp price falls.However Chinese companies have been relentlessly adding capacity and lowering costs leaving European and US companies in the dust.Some of the top solar companies of yesteryears Q-Cells,Evergreen Solar are now on the verge of bankruptcy.

Chinese Banks Back $10 Billion Bid to Build Solar in Europe

Two Chinese banks are providing as much as $10 billion in funding to a group of three Chinese makers of solar equipment to build sun-powered energy projects in Europe.

China Merchants Bank Co. and the state-owned China Development Bank Corp. are backing the efforts of Goldpoly New Energy Holdings Ltd., TBEA SunOasis Co. and China Technology Development Group Corp. to expand in Europe, CTDC said in a statement.

“Our PV investment consortium has strong financial support from China Development Bank and China Merchants Bank,” said Jianxin Zhang, chief executive officer of TBEA SunOasis, based in Urumqi. “Given their backing of $10 billion credit facilities, we will be able to grow steadily and advance our investment and construction of solar plants in Europe.”