JinkoSolar announced that it has entered into a five-year RMB1 billion strategic financing agreement with China Minsheng Banking Corp., Ltd. (CMBC). CMBC’s financial services will help JinkoSolar enhance its solar PV infrastructure construction in China.
According to the terms of the agreement, CMBC will provide financing services that will include but are not limited to merger and acquisition finance, supply chain finance, bridge loans, letters of guarantee, trade finance, and project finance especially for distributed PV projects.
As a first step in the relationship, CMBC has agreed to provide an RMB88.8 million project loan for a 20MW distributed solar PV project in Haining Hi-tech Park, Zhejiang Province. The project has already been submitted and approved by the National Development and Reform Commission. Constructed on the roof-tops of adjacent offices and production facilities, the project will cover an area of 234,000 square meters. The power generated will be used by the surrounding businesses with residual power fed back into the grid. Building upon this agreement, JinkoSolar plans to replicate this financing model with three separate 20MW distributed PV projects, totaling 60MW, located in Jiaxing City, Zhejiang Province.
"We are extremely excited to have the opportunity to build a new strategic partnership with China Minsheng Bank," commented Mr. Xiande Li, Chairman of JinkoSolar. "Distributed PV generation systems represent the future for the Chinese market, but its development over the past few years has been hampered by financing difficulties. We believe that this agreement represents a new era in the financing of distributed generation projects for JinkoSolar. "