China Development Bank renewed its pledge of credit support for the nation’s largest solar companies amid a global supply glut and anti-dumping complaints in the US and Europe.
The lender has completed its recommendations on further strengthening financial support for the sector with priority given to 12 companies, the official China Securities Journal reported today, citing an unidentified person.
The recommendations, which reaffirm lending targets set earlier this year for the solar sector, ensure credit quotas for the 12, which are the industry’s largest and most advanced including Suntech Power Holdings, Trina Solar and Yingli Solar, the newspaper said.
China Development Bank, which lends to support state policies, will soon submit the recommendations to the National Development and Reform Commission for approval, the newspaper said, citing the person.
Feng Qihua, a spokeswoman for China Development Bank in Beijing, wasn’t immediately available to comment when contacted by telephone.
Hareon Solar Technology, Shanghai Chaori Solar Energy Science & Technology and Sungrow Power Supply, which are listed on the local bourses, are also on the priority list, the newspaper said.
Controlled lending
Lending to the rest of the industry will be strictly controlled and the bank won’t provide financing solely for the expansion of manufacturing capacity, the newspaper said.
As state policies encourage consolidation among China’s solar companies, the bank will support acquisitions of smaller firms by larger ones, the Securities Journal said.
The lender has extended $66.1 billion in credit lines to at least 15 Chinese solar and wind companies since 2010, according to data compiled by Bloomberg New Energy Finance.
The State Council in July set a target of raising the country’s solar-power installations to 50 gigawatts in 2020. China currently has installed capacity of about 3.6 gigawatts, according to Bloomberg New Energy Finance.
