This week, Trina Solar, PingAn Trust and Jiangu Jiuzhou Investment (PingAn Trust and Jiuzhou Investment, collectively “the investors”) has jointly signed a framework investment agreement (the “agreement”) to develop 500~1,000 MW of solar power plants in China over the next three years.
Under the terms of the agreement, the Investors will enter convertible loan arrangements with Trina Solar to support the development of downstream projects in China. The Investors are entitled to convert the loans into minority stake in the project companies at pre-determined time. The investors are also entitled to participate in the potential capital operation of the holding vehicle in the future. To capitalize on growing demand in China and to strengthen Trina Solar's efforts in the downstream business Trina Solar established Jiangsu Trina Solar Power Investment & Development Co., Ltd. under the above-mentioned holding vehicle at the end of 2014.
In addition, the Investors will provide bridge loans after completing due diligence on the Projects in order to meet their funding needs during the construction phase. The convertible loans and the bridge loans will not prevent the project companies from applying for long-term loans from other financial institutions. Trina Solar and Investors are actively evaluating the portfolio of projects that need to be financed.
"By leveraging their financial strengths with our proven expertise in manufacturing and power plant development, we have a unique ability to build a superior and professional downstream development and operation company,” said Mr. Jifan Gao, Chairman and Chief Executive Officer of Trina Solar. “In recent years, China's demand for new energy has been growing quickly.In 2015, we will use this strategic collaboration as an opportunity to further reinforce and expand our leading position in China's PV market."
(Words on top graphic: solar power can be benefitial to humankind. Source: Trina Solar)