Yingli Green Energy Holding Co. (YGE) and its affiliates potentially
could borrow up to RMB36 billion ($5.31 billion) under an agreement with China
Development Bank to support the solar-panel maker's expansion.
Chinese solar companies have benefited as demand has rebounded of late and
prices remain low compared to
U.S.
and
European rivals, with many companies stepping up production.
Details of the agreement with China Development Bank--a former state-run policy
bank that transformed itself into a shareholding lender--still need to be
negotiated.
Yingli Chief Financial Officer Zongwei Li said Friday the company believes the
accord "will give us the ability to pursue opportunities that will allow
us to strengthen our leadership position" in the solar industry.
Global installations of solar panels are expected to roughly double this year
from last year. The boom is partly being driven by European countries such as
Germany
,
where there is a rush to beat subsidy cuts set for later this year. Meanwhile,
government incentives are lifting
U.S.
demand, with Yingli and some rivals planning
U.S.
factories to be closer to potential customers.
Yingli in May reported that it rebounded from a prior-year loss in the first
quarter caused by slumping demand, while in the quarter margins improved
sharply.
American depositary shares closed Thursday at $11.75 and were inactive
premarket. They are
down 26% this year.