Chinese solar company JA Solar (Nasdaq: JASO) announced that it has secured up to RMB 30 Billion ($440 million) of credit facilities and financing from a state-owned bank.
The company signed a Financial Partnership Agreement with the Shanghai branch of China Development Bank (CDB), a government policy bank solely owned by China's central government.
The funding will be used to support JA Solar's long-term growth and corporate development plans.
Detailed terms of the various credit facilities will be subject to the internal procedures to be conducted by CDB in accordance with its risk management and operational regulations, subject to individual credit and lending agreements.
China Development Bank also agrees to actively support JA Solar in the investment in and financing of its business development and growth plans. The parties will meet on a regular basis to identify additional opportunities for strategic cooperation. They have also agreed to work closely to improve JA Solar's global competitiveness, and collaborate to create an international financing platform to support JA Solar's growth and capital needs.
In July, JA Solar signed strategic agreements with California-based Innovalight, Inc. to use the company's silicon ink manufacturing process.
Earlier this year, China Development Bank offered even larger credit deals to three other solar companies--the equivalent of $7.33 billion for Suntech Power Holdings (NYSE: STP); $4.4 billion for Trina Solar (NYSE: TSL); and $5.32 billion for Yingli Green Energy Holding Company Limited (NYSE:YGE).
