JKS enters into another agreement with CDBI

Jinko Solar (JKS) is becoming the blue eyed boy for the Chinese Government. The company is successfully bagging financial help from the local government in China. It had recently signed RMB 241.4 million loan agreement with China Development Bank in April, for two Chinese PV solar projects. Now the company has entered into another agreement China Development Bank International (CDBI), the Macquarie Greater China Infrastructure Fund (MGCIF) and New Horizon Capital for investment in its downstream solar power project business. The deal states that the above three entities will invest $225 million in Jinko Power for approximately 45% of equity interest in Jinko Power.

Jinko Solar is happy to enter into such an agreement and expects more future deals like this. The company is hopeful and has thus revised its full-year project development guidance for 2014 upwards from 400 MW before, to more than 600 MW now. This also proves the Chinese government belief in its domestic companies. The Chinese Government is known for helping its domestic solar industry in the past and has always come to the forefront to aid them. Companies like Trina Solar and Suntech were thriving because of such help from the Chinese government. However, the Chinese are now more cautious and vigilant in granting financial help to the local companies, thus helping only the more deserving ones.

Jinko Solar is a promising Chinese company and has performed well in Q2 2014 too. The company has a widespread customer base and geographical presence, a strong solar business and Chinese government support. Thus it has everything it takes to stay for long in the solar business. The company’s good performance coupled with government support gives more reason to the company to cheer for. With the government now helping only the strong companies, it will further help to filter the more deserving from the average ones.

Source: PV Magazine