JA Solar nabs USD-90m loan from Bank of Communications of China
Aug 5, 2013 - Chinese solar products maker JA Solar Holdings Co Ltd (NASDAQ:JASO) and a subsidiary have obtained a credit facility of CNY 550 million (USD 90m/EUR 68m) from the Bank of Communications of China.
On Monday, JA said that it would get CNY 250 million of the total amount to replenish working capital and for general corporate purposes. The remaining CNY 300 million will go to Jinglong Group, which is a manufacturer of ingots and wafers as well as solar cells and modules.
The credit facility agreement follows the introduction in July of additional incentive policies for the solar industry in China. Among these was a government commitment to credit support to major solar firms that have advanced technology and long-term growth potential. Just on August 1, JA Solar said it had achieved a conversion efficiency of 18.3% with multi-crystalline silicon (multi-Si) solar cells.
In mid-July China’s State Council announced 35 GW as the new solar capacity target for 2015. At the time, the State Council also called on local lenders to keep supporting profitable and efficient solar equipment makers. China will also provide tax breaks to solar manufacturers that acquire peers, merge or restructure.