SolarPVInvestor Forums

http://services.corporate-ir.net/SEC/Doc…1NvbGFyQ28ucGRm

258k electricity sales

Gotta read the fine prints:

On January 29, 2013, the Group issued unsecured six-year bonds with an aggregate principal amount of RMB800 million which bears a fixed annual interest rate of 8.99% and will mature on January 29, 2019. At the end of the third year in the life of the bonds, the Group has the option to raise the interest rate by up to 100 basis points, and the bondholders will have the right to require the Company to repurchase all or part of their bonds, at such time. The proceeds from the issuance of the bonds were originally intended to be used for capital expenditure of solar cell and modules facility. The Group has changed the purpose of use of proceeds to develop solar power plant plants with RMB 640 million and for working capital purpose of RMB 160 million prior to the required approval by the bond holders as well as filing with the relevant government authority. A bond holders meeting held on April 25, 2013 approved the change of the usage and as of the date of report, the Group is in the process of the filing with relevant government authority.

Risk profile of use of that RMB 800m proceeds have completely changed.

Since you are sarcastic all the time it is hard to tell if you are surprised with the interest rates solar11 pay. Anyway, the argument that they get free credit was completely flawed. Most of them pay higher interest rates than non-Chinese peers. Trina might be an exception. They seem to be able to get tons of non-secured debt at very low interest. They also seem to have gotten raw materials at very low price in Q4. Trina have mastered the classical Chinese business trait of stubborn unwillingness to pay much for stuff and in the end close deals where they pay very little. I think the enabler of this is tough and strong management on this side of the business and their historical outstanding financial performance compared to other solar11s. They're connected. Banks and poly makers want surviving clients.

These high levels are not a surprise. They have been quite common in new bonds past year or two. The blends that have been creeping up form 4's to close to 7's is because debt cost more today.

Yes, we all know this, but this thread was about Jinko's 20-F and I quoted some news from it. The bond and interest is not the news and certainly there's nothing about YGE's interest rate in their. The news is that Jinko will use 640m for project development and 160m for working capital instead of using all 800m for capex.