United PV secure RMB10 billion finance
United Photovoltaics Group Limited has announced it has entered into a strategic cooperation agreement with China Financial Leasing Company Limited (Sinolease). Sinolease intends to provide United PV with finance lease in an aggregate amount of no less than RMB10 billion, (Approx US 1.6 billion)
The finance lease provided by Sinolease is mainly to support the Company's acquisitions, development and construction of solar photovoltaic power plants at home and abroad, as well as the cooperation between the parties in the areas of operation and maintenance of solar photovoltaic power plants during the five-year period. The leasing solutions include but are not limited to direct lease, sale-leaseback, leverage lease, entrust lease, etc. Moreover, Sinolease also intends to provide financial consultation service to the Company and develop financial products and services for the specific business needs of the Company.
Sinolease is a finance leasing company jointly founded by Tianjing Innovative Finance Investment Co., Ltd and Sino Finance International Co. Ltd with RMB2 billion of registered capital, upon approval by the State Council and China Banking Regulatory Commission. Its major partners include government agencies, conglomerates, and renowned international institutions. In response to the government's policies of promoting energy saving and environment protection, Sinolease has gained solid experiences in providing finance leasing services to projects of solar photovoltaic energy generation, power transmission and transformation equipment as well as energy performance contracting.
Mr. Hong LI, Chief Financial Officer of United PV, said: "United PV has devoted unwavering efforts to enhance the operation of and investment in solar power plants. Our strengthened ties with well-established finance leasing companies will allow us to diversify financing channels besides bank loans, bond financing and equity financing, while at the same time reducing our capital-raising costs. The finance lease is expected to fuel the smooth development of our high-quality solar power projects. As a move to advance the asset-light strategy, the Agreement lays a sound foundation for our further cooperation with superb partners in the future, in terms of the leasing mode, amount as well as other terms, and also provides a continuous momentum for the sustainable development of the Company."
Mr. Hong LI, CFO of United PV and Mr. Zhongxiao Yao, Chief Operating Officer of Sinolease signed the Agreement on behalf of United PV and Sinolease respectively, witnessed by Mr. Alan LI, Chairman and CEO of United PV; Mr. Jianding CHEN, President of Sinolease and Mr. Lijun YANG, General Manager of Huabei Expressway Co Ltd.
