Shunfeng PV secures USD-322m loan for solar plants

Jul 21, 2014 - China-based Shunfeng Photovoltaic International Ltd (HKG:1165) said today it has secured a credit line of up to CNY 2 billion (USD 322m/EUR 238m) from China Merchants Bank Co Ltd (HKG:3968) to back its solar farm projects.

Under the agreement, signed on July 18, the company’s wholly-owned subsidiary Jiangxi Shunfeng Photovoltaic Investments Co Ltd and its 16 units can use the three-year revolving credit line for asset loans, financial guarantees and credit financing.

The company, which makes solar photovoltaics (PV) and also builds and operates solar parks, said in a separate statement today it expects to return to profit in the first half of 2014 after a CNY-672.7-million net loss a year earlier. The turnaround will be due to higher demand for its PV cells, the acquisition of Chinese solar products maker Wuxi Suntech Power Co, profits from its solar power generation business and other factors.

The group is expected to publish its audited financial report by the end of August.

Recently, Shunfeng PV postponed a planned HKD 6 billion (USD 774m/EUR 572m) equity offering because of the unstable stock market conditions.

(CNY 1 = USD 0.161/EUR 0.119, HKD 1 = USD 0.129/EUR 0.095)

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