ReneSola secures $117M loan for polysilicon plant

Jiashan, China-based solar wafer maker ReneSola (NYSE: SOL) said today it secured a loan of RMB 800 million ($117 million) to build its polysilicon plant in Meishan, Sichuan province, China.

The company's shares were up nearly 7 percent at the close of trading.

The five-year loan from China Construction Bank brings ReneSola to 90 percent of the capital required to finance the project, which is expected to have a production capacity of 1,500 metric tons a year in its first phase.

ReneSola plans to begin construction in the second quarter on the first phase. A second phase, also with capacity of 1,500 metric tons, is planned for construction in the third quarter.

ReneSola said it delayed the project late last year to conserve capital during the global credit crunch. The company also lowered its earnings estimates for the year (see Bad news from Q-Cells spreads through solar supply chain).

ReneSola says it plans to produce 750 metric tons of silicon this year for its own use.

Earlier this week, Baoding, China-based Yingli Green Energy Holding (NYSE: YGE) said it secured an $80 million loan to finance its polysilicon plant.