China’s JA Solar Holdings Co Ltd said Friday it has signed a 30 billion yuan ($4.42 billion) credit agreement with China Development Bank (CDB), sending its share price higher.
The loan will finance the company’s long-term growth plans, it said.
JA Solar is the fourth Chinese solar company this year to receive loans from the CDB, an arm of the Chinese government that provides funding for infrastructure projects.
JA Solar said collaboration opportunities with CDB include mutually beneficial arrangements for project financing and financial services.
In July, the CDB extended a 36 billion yuan ($5.31 billion) credit to Yingli Green Energy Holding Co Ltd for photovoltaic investments.
In April, Suntech Power Holdings Co Ltd signed an agreement for up to 50 billion yuan in CDB loans and Trina Solar Ltd struck a deal for 30 billion yuan in CDB loans.
Making the loans available for general purposes gives the Chinese companies flexibility. In other countries, such as the U.S., government loans for the solar industry tend to be tied to specific projects.
On Thursday, the United Steelworkers union filed a petition with the U.S. Trade Representative’s office seeking action against what it called illegal Chinese practices that it said threatened U.S. jobs in the clean energy area.
Sales of photovoltaic solar equipment have jumped this year as buyers rush to build projects ahead of declining subsidies in Europe.
JA Solar has said it would ramp up its cell manufacturing capacity to 1.8 gigawatts by the end of 2010 to meet the growing demand.
In New York, JA Solar’s ADRs rose as much as 5 percent before settling back in the late afternoon around $7.25, up 1.3 percent.
