Yingli China signs loan worth US$ 165 million from China Development Bank

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Greentech Lead Asia: Chinese solar maker Yingli Green Energy Holding Company which markets its solar products under the brand Yingli Solar announced that its subsidiary Yingli China has signed two loan agreements with China Development Bank (CDB) with an aggregate of US$ 165 million.

Under the terms of the Agreements, CDB will provide Yingli China with a one-year loan of US$110 million and a three-year loan ofUS$55 million to complement its working capital needs and support the procurement of raw material.

Liansheng Miao, chairman and chief executive officer of Yingli Green Energy, said, “With the new financing in place, we’re confident to continue to solidify and reinforce our leading position globally. At the same time, as our operating cash flow position is on track to gain improvement, we expect to continuously optimize our balance sheet. ”

The announcement is significant considering the financial crisis affecting the solar makers in the country. Last month Suntech filed for bankruptcy after defaulting on $541 million of its dollar-denominated bonds. Suntech is now planning to sell off its Italian assets to pay off its debts.

Recently another Chinese solar panel maker, LDK Solar, reported seventh straight quarterly loss and partially defaulted on bond payment. The company is now trying to sell off its assets in both state-and privately-owned entities.

Yingli Solar has been one of the top performers in the solar industry in China. The company has outperformed its major rivals Trina Solar and Suntech in annual PV shipments.

Yingli Solar reported total net revenues of RMB 11,391.9 million (US$1,828.5 million) in 2012, compared to RMB 14,678.0 million in 2011. PV module shipment volume in 2012 was 2,297.1 MW, a significant increase of 43.2 percent from 1,603.8 MW in 2011.

For Trina Solar, module shipments in 2012 were approximately 1.59 GW, an increase of 5.4 percent from 2011; Suntech shipments were approximately 1.7GW.

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