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LDK Solar Agrees to Borrow $8.9 Billion for Expansion (Update3)
2010-09-27 19:31:22.456 GMT
(Adds shares in second paragraph.)
By Bloomberg News
Sept. 27 (Bloomberg) --LDK Solar Co., a Chinese solar wafer
maker whose shares have risen more than 80 percent this quarter,
agreed to borrow as much as 60 billion yuan ($8.9 billion) from
China Development Bank to help fund its expansion.
The 5-year credit facility will support the Jiangxi-based
company's growth plans and strengthen its market position, it
said today in a statement. LDK Solar rose 14 percent to $10.09
at 3:20 p.m. in New York trading, set for its biggest one-day
gain since Nov. 18.
The loan brings to at least $42.8 billion the total
announced deals state-owned China Development Bank has signed to
support a domestic expansion in clean-energy companies. LDK
Solar's loan is the largest that the bank has extended in 2010
to the country's integrated solar product makers.
The Beijing-based bank has already agreed to $21.4 billion
of loans to four solar manufacturers including JA Solar Holdings
Co., Trina Solar Ltd., Yingli Green Energy Holding Co. and
Suntech Power Holdings Co.
The bank is also providing financing for Chinese wind
turbine makers as China pushes to fund growth in cleaner energy
technologies. China Development Bank this year agreed to loan
$6.5 billion to Sinovel Wind Co. and $6 billion to Xinjiang
Goldwind Science & Technology Co. for their overseas businesses.
The Development Bank's financing plans are in line with the
nation's strategic priorities as China's State Council in May
said it would improve financing services to push private
investment in clean energy.
For Related News and Information:
Most-read alternative energy stories: MNI ALTNRG <GO>
New Energy Finance top news: TNEF <GO>
Renewable energy, environment page: GREEN <GO>
--With assistance from Todd White in Madrid; Editors: Randall
Hackley, Josh Fellman
To contact Bloomberg News staff for this story:
Feifei Shen in Beijing at +86-10-6649-7527 or
Fshen11@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net.
