On Oct. 22, Sky Solar, a Shanghai-headquartered IPP, developer and investor with PV as its core business, announced that it will be granted a credit facility worth 10 billion RMB from China Development Bank Corp. (hereinafter referred to as CDB) over the next four years. Sky Solar Holdings Co., Ltd. has entered into the Developing & Financing Cooperation Agreement with the Shanghai Branch of CDB.
Under the agreement, from 2012 to 2016, the total financing volume of the various financial products is estimated at 10 billion RMB (or the equivalent in other currencies). CDB is using their large-scale, long-term and stable fund resources, high credit rating and their significant presence in foreign markets to provide Sky Solar with a full array of financial products and services, such as equity, debts, loans, leasing, bonds, securities, etc. CDB will also provide priority financing support in relation to project development, project construction and asset management.
Sky Solar will utilize their core competences and key advantages of global resources, technical & local team strengths, unique technology and brand neutral stance, worldwide project pipelines, global asset O&M strength, together with CDB's financial capabilities to optimize global PV assets investment return, secure industry profit and to re-enforce industry specializations. This in turn means that both parties will continue to support China-based PV manufacturers with cost-competitive products. As a result, Sky Solar and CDB have created a new strategic cooperative partnership combining national capital with "glocal" downstream development and investment resources, creating a win-win situation that will boost global renewable energy development.
Amy Zhang, CEO of Sky Solar Holdings Co., Ltd, said: "at the present time, with such complex feelings regarding the PV industry, I'm extremely grateful to China Development Bank's Shanghai Branch for the trust and support they have given to Sky Solar! Sky Solar has been working with CDB in the project financing areas in the past two years. Signing this agreement symbolizes the beginning of China's state owned financial institutions offering credit facilities to downstream independent PV developers, investors and IPP's. Investing in the upstream only creates production, whilst investing in the downstream increases demand for production and creates highly feasible and stable assets therefore driving capacity and ensuring a safer and more innovative use of capital. This is a significant and important step forward! By supporting downstream developers and operators, CDB and its Shanghai Branch have helped established new international and domestic markets for PV manufacturers currently facing huge pressure due to the current over-supply situation. This professionalism and cooperation is helping to solve the current over-supply crisis faced by the entire PV industry. Chairman of Sky Solar Mr. Weili Su said, "with the support of CDB's Shanghai Branch, Sky Solar is establishing a healthy PV industry and successfully combining high quality capital and integrated services. China's PV industry is now, due to this partnership, making one big step forward".