Yingli Green Energy's Affiliate Signs Strategic Cooperation Agreement With China Development Bank

published: 2010-07-12 15:18 | editor: | category: News

Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which holds the brand "Yingli Solar," announced that its affiliate, Yingli Group Company Limited ("Yingli Group") has entered into a strategic cooperation agreement with the Hebei Branch of China Development Bank ("CDB"), a government policy bank solely owned by China's central government, which contemplates potential credit facilities in the aggregate maximum amount of RMB 36 billion to be granted to Yingli Group and its affiliates, including three PRC subsidiaries of Yingli Green Energy--Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli"), a 74%-owned subsidiary of Yingli Green Energy, Yingli Energy (China) Co., Ltd. ("Yingli China"), a wholly owned subsidiary of Yingli Green Energy, and Fine Silicon Co., Ltd. ("Fine Silicon"), a wholly owned subsidiary of Yingli Green Energy.

Under the terms of the strategic cooperation agreement, subject to internal procedures to be conducted in accordance with its risk management and operational regulations, CDB expects to grant, among other credit facilities, credit facilities with an aggregate maximum amount of RMB 36 billion to support Yingli Group and its affiliates, in particular, Tianwei Yingli, Yingli China and Fine Silicon, three PRC subsidiaries of Yingli Green Energy, in their PV industry-related domestic and overseas investments. In addition to the internal procedures to be conducted by CDB, detailed terms of the credit facilities and related credit agreements will need to be negotiated before the relevant credit facilities may be granted. Therefore, no assurance can be given that the credit facilities will be eventually granted as currently contemplated in the strategic cooperation agreement or at all.

"We are very pleased with CDB's support and confidence in Yingli Group and Yingli Green Energy, which resulted in this strategic cooperation agreement," commented Mr. Zongwei Li, Chief Financial Officer of Yingli Green Energy. "This agreement raised 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 PV industry."

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