Jinko announces investment capital boost
JinkoSolar has announced that China Development Bank International ("CDBI"), the Macquarie Greater China Infrastructure Fund ("MGCIF"), a fund managed by Macquarie Infrastructure and Real Assets, and New Horizon Capital ("New Horizon") have agreed to invest a total of US$225 million in the Company's downstream solar power project business.
JinkoSolar Power Engineering Group , a subsidiary of JinkoSolar that develops and operates its downstream solar power project business, entered into separate definitive share purchase agreements with each of CDBI, MGCIF and New Horizon. Under the subscription agreements, CDBI, MGCIF and New Horizon have agreed to invest a total of US$225 million in Jinko Power. Upon completion of the investment and the Company's additional capital contribution to Jinko Power, the three investors will hold a total of approximately 45% of Jinko Power's equity interest.
The investments by CDBI and New Horizon are expected to close in the near future upon satisfaction of customary closing conditions. The three investors are expected to provide support and additional resources to facilitate Jinko Power's business development in terms of project financing, project development, project operation and global green energy network.
"We are very pleased to welcome CDBI, MGCIF and New Horizon as partners in our downstream business. They will not only contribute capital to further expand our project development capabilities, but will also provide a wide range of support to drive future growth. We believe this is another vote of confidence in our team and the long-term prospects of our downstream business, and are confident that with their support, Jinko Power will deliver strong growth which will in turn benefit all of JinkoSolar's shareholders," said Mr. Xiande Li, Chairman of JinkoSolar. "In addition, China's solar power market has a well-established regulatory framework and is currently in a phase of rapid growth. CDBI's investment demonstrates the growing interest from domestic Chinese capital in the solar power project sector. We also expect MGCIF to help us further tap into the global solar power market through the Macquarie Group's global resources and network. This round of investment marks an important milestone in our effort to spin off and list our downstream business. With the added strengths of these new partnerships, we are revising our full-year 2014 project development guidance upwards from 400MW to above 600MW. Our downstream capacity will exceed 800MW by end 2014. Looking forward, we intend to continue taking full advantage of our leading position in the Chinese solar power infrastructure sector to further grow our downstream business."
