Yingli Green Energy Subsidiary Signs Five-Year US$50 Million Credit Facility Agreement with DEG and FMO
Tuesday September 2, 7:31 am ET
BAODING,China--(BUSINESS WIRE)--Yingli Green Energy Holding Company Limited(NYSE: YGE - News) (“Yingli Green Energy” or the “Company”), one of theworld’s leading vertically integrated photovoltaic (“PV”) productmanufacturers, today announced that Baoding Tianwei Yingli New EnergyResources Co., Ltd (“Tianwei Yingli”), the Company’s principaloperating subsidiary, has entered into a five-year credit facilityagreement with DEG - Deutsche Investitions- undEntwicklungsgesellschaft mbH (“DEG”) and the Netherlands DevelopmentFinance Company (“FMO”).
Underthe agreement, DEG and FMO have agreed to lend Tianwei Yingli up to anaggregate of US$50 million to support Tianwei Yingli’s capacityexpansion, subject to certain conditions. The loans will be guaranteedby Yingli Green Energy and will carry an interest rate of LIBOR plus3.0%, with outstanding principal payable in eight bi-annualinstallments from March 2010 to September 2013.
“Climateprotection has been an important issue for DEG since the mid-1990s,”said Mr. Winfried Polte, Chairman of the Board of Management of DEG.“We are proud to support Yingli Green Energy as a company distinguishedby exceptional expertise and a proven track record in the solar energyindustry. In addition, Yingli Green Energy’s capacity expansion willcreate thousands of new jobs in China thereby contributing to economicgrowth in this rapidly developing economy.”
“FMO is stronglycommitted to renewable energy projects,” said Mr. Arthur Arnold, ChiefExecutive Officer of FMO. “Energy is central to economic and socialdevelopment and essential to fighting poverty in emerging markets.Therefore we are pleased to contribute to the rapid growth of the solarenergy market worldwide by financing Yingli Green Energy’s expansion ofproduction capacity in China.”
“We are pleased to have beenselected to receive financing from DEG and FMO, two well-knownfinancial institutions that specialize in providing long term financingto support socially and environmentally friendly companies indeveloping countries,” commented Mr. Zongwei Li, Chief FinancialOfficer of Yingli Green Energy. “The strong commitment of DEG and FMOto our growth strategy not only strengthens our ability to expand ourvertically integrated manufacturing capacity, but also enhances ourdebt structure by enabling us to shift to longer term indebtedness.
“Webelieve this financing demonstrates DEG and FMO’s confidence in ourbusiness strengths and leadership position, as well as recognizes ourstatus as a good corporate citizen. As a leading green energy company,we not only focus on developing our own business to provide returns toour shareholders, but also aim to make lasting contributions to societyand the environment through job creation, appropriate workingconditions and valuable technical training, as well as adherence tointernationally accepted environmental protection standards andresearch and development efforts to create innovative energy efficientmanufacturing processes.”
About DEG
DEG, a member of theKfW Bankengruppe (KfW Banking Group), finances investments in companiesin developing and transition countries. As one of Europe’s largestdevelopment finance institutions, it promotes private businessstructures that contribute to sustainable economic growth and improvedliving conditions.
About FMO
FMO is the internationaldevelopment bank of the Netherlands and one of the largest bilateraldevelopment banks worldwide with an investment portfolio ofapproximately
comments: good news for the financial side of YGE...it should be able to make the cash flow look better ( more cash to pay the short term borrowings)
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