ReneSola Signs RMB320 Million 15-yr Loan Agreement with China Development Bank

larryvand

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Thursday, March 21st 2013, 3:04am

ReneSola Signs RMB320 Million 15-yr Loan Agreement with China Development Bank

Press Release: ReneSola Ltd. – 31 minutes ago
JIASHAN, China, March 21, 2013 /PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company") (SOL), a leading global manufacturer of solar photovoltaic ("PV") modules and wafers, today announced it has signed a RMB320 million (approximately US$50.9 million) 15-year loan agreement with China Development Bank.
....click link for more
http://finance.yahoo.com/news/renesola-s…-093000173.html

....BTW, I told you so that funding was no issue...

This post has been edited 1 times, last edit by "larryvand" (Mar 21st 2013, 5:06am)

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Pop2mollys, eysteinh

eysteinh

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Thursday, March 21st 2013, 3:08am

Haha nice combeback

15 year loan agreement. Seems renesola will survive this and they are exellent operationally.

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explo

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Thursday, March 21st 2013, 3:10am

15-year? CDB expecting SOL to be around for a while?

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sony1

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Thursday, March 21st 2013, 3:20am

The real news here is they only got $50M

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larryvand

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Thursday, March 21st 2013, 3:26am

How many times did I say that funding was not an issue, a non-event?? Renesola is one of a vary few Chinese solar companies (possibly the only one AFAIK) that in Q4 was EBITDA neutral and had positive cash flow. Their customers and their banks love them as they produce the best products with possibly one of the lowest costs in the business, and IMO have one of the best management teams around. And these metrics will only get better throughout Q1,Q2, Q3 and Q4 2013, while GCL and their zombie customers keep losing massive amounts of money ($740 million dollar in losses for GCL and just 2 of their customers in just Q4 2012.)

This post has been edited 1 times, last edit by "larryvand" (Mar 21st 2013, 3:49am)

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Believer

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Thursday, March 21st 2013, 3:30am

YEAH, that`s what I`ve been waiting for. I think it is very good news, not so important that it is just $50,9M. They lend this money now, why should they lend more than they need? I think after the share-price was hit for ??? reason so hard in last days, they decided to make agreement fast, so nobody thinks that CHINA DEV BANK wouldn`t give them any money. And lending for 15 YEARS , this is a big TRUST EVIDENCE.

Last days I am really shocked about what happend with SOL stock-price. IMHO I just had two logical reasons for this. 1. Ít is manipulated 2. Somebody big really thinks that SOL doesn`t get money lend nowhere.

So point 2. is proved now, that it is noncence, let`s see what happens today.

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explo

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Thursday, March 21st 2013, 3:51am

Yes, it almost sounds like they were under some kind of attack and asked CDB to help them make a statement. They probably don't want LT loans so they took just 51m and made it a 15-year loan just to make the statement that CDB has no problem betting still sizable 50m on them with 15 year maturity.

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Pop2mollys

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Thursday, March 21st 2013, 3:58am

Very good news. STP couldn't get the money, SOL can. Also no convertibles due to 2018. Very good news!

Long 80% CSIQ, 20% SOL

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Pop2mollys

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Thursday, March 21st 2013, 4:03am

All you guys hit the nail on the head. It was a statement from SOL management to market. That is the best move they could have done at this moment. The market is gonna scratch its head and say why did Bank of China let STP fail but feel so confident in SOL. Good stuff guys! Lets not forgot the impressive earnings and guidance they had compared to other solars!

Long 80% CSIQ, 20% SOL

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ILOVEPV

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Thursday, March 21st 2013, 6:05am

If it were a reason the stock should have ramp up in PM today for 15-17% to speed up other pack (%% gap yesterday evening). I doubt it will be up today more than 4-5% if any. Or shorts let you a small rest for 1 day. Once again: a reason is beyond company activity. That is why buying at this level is a blessing.

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explo

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Thursday, March 21st 2013, 6:37am

Yes, seems like it. Perfect to have confirmed that pricing is not related to company and still have this level available.

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ILOVEPV

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Thursday, March 21st 2013, 10:43am

As I posted yesterday SOL's trading was not related to the company. It was an execution of planned in advance algorithm to pick cheap shares from weak hands. A plan was partially fulfilled. Now what? Now we will get some consolidation near the bottom i.e. some trading to cover short positions taken for the last 3-4 weeks and finish a rest of shares planned to pick. As I posted earlier I sold today (1.78) all 50K bought yesterday (1.59 and 1.64) and set 2 buy orders 25K each to ride wave. Another question: how long this consolidation will be lasted. Nobody knows besides those who control the the price but I do not think it will be longer than 2-3 weeks, max 4-5 weeks. Then a new wave of rally will be created to bring all pack to 100-150% up from current (or somewhat lower) digits. It means before Q1 reports hit a wire we will likely find our 9 solars in the following ranges - I put only my holdings (please do not judge me too strong if I'm wrong in ranges - this is only JMHO and my interpretation of trading environment)
SOL 3.30-3.60
TSL 7.5-8.00
YGE 4.20-4.80
JKS 12.00-13.00
CSIQ 7.00-8.00

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N0mistakes

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Monday, April 8th 2013, 1:58am

When Jinko announced a basically similar loan, they made it clear that the loan was to build projects in China. SOL said the loan was for "operations in China". There are questions about their ability to pay for their operations and this loan is pointed to as part of the proof it isn't an issue. Does anyone know if this is just a project loan (which is future spending and not included in the general cash flow numbers that are bandied about) or if it is available for working capital purposes? If it is a project loan (or a capex loan), then why wasn't it stated in a transparent manner like Jinko did in their announcement?

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explo

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Monday, April 8th 2013, 2:10am

It might be for their China project pipeline. I think they'll continue to roll-over ST debt for WC.

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solarcat

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Monday, April 8th 2013, 10:56am

"This funding will support our operations in China, a market in which we saw encouraging growth in the fourth quarter of last year," said Mr. Xianshou Li, ReneSola's chief executive officer. "Our ability to secure additional capital amid weak macro conditions and a tight credit environment speaks to our healthy overall financial position, as well as to the ability of our management team." - SOL

http://finance.yahoo.com/news/renesola-s…-093000173.html

JKS - "We are very pleased to further extend our relationship with CDB by signing this loan agreement," stated Mr. Xiande Li, Chairman of JinkoSolar. "Securing long-term and stable source of capital, within this agreement, will reinforce our competitive status and already leadership position in the Chinese market. It demonstrates CDB's trust in the Company's strong balance sheet and solid market reputation. We will utilize the financing to promote the development of our PV solar systems to create more opportunities in the green energy field."

http://finance.yahoo.com/news/jinkosolar…-090000565.html

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N0mistakes

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Monday, April 8th 2013, 2:47pm

Solarcat - I am not sure about the purpose of your post. You did not quote the 1st paragraph of Jinko's press release where they clearly said the loan is for projects:

"SHANGHAI, April 4, 2013 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (JKS), a leading global PV solar power product manufacturer, today announced that it has signed a RMB360 million (approximately US$58 million) 15-year loan agreement with China Development Bank ("CDB"). The Company will use the financing to develop its domestic PV solar power plant projects."

SOL's release was much more generic and did not include the use of funds. I am willing to bet that it is the same type of loan and that it is not supporting regular operations. It still means that CDB feels that both companies are creditworthy enough to lend to inside China for China projects, but it is not quite what the original assumptions in this thread were.