LDK Solar (NYSE: LDK) is the latest Chinese solar company to secure a massive line of credit from a state-owned bank.
The company announced a strategic financing agreement with China Development Bank Corporation (CDB) for up to RMB 60 Billion (or approximately US$8.9 billion) of credit facilities to over a five-year period.
CDB is a joint stock banking corporation owned by the state of China.
The financings will support LDK Solar's long-term growth initiatives and corporate development plans. Terms of the individual credit facilities and lending agreements will be subject to CDB's internal risk management requirements and operational regulations.
Earlier this month JA Solar (Nasdaq: JASO) announced a similar agreement with CDB for up to RMB 30 Billion ($440 million).
CDB offered even larger credit deals to three other solar companies earlier in the year--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).
Easy access to capital for Chinese companies is part of the reason they are on their way to dominating the market for inexpensive cyrstalline solar modules.