Yingli takes on $877M loan for subsidiaries

Hebei, China-based PV manufacturer Yingli Green Energy Holding (NYSE:YGE) is securing RMB 6 billion ($877.6 million) in loans for its subsidiaries, less than a month after taking on other obligations for the same companies.

The new credit facilities are expected to come from the Bank of China’s Hebei branch and be distributed through Yingli affiliate Baoding Yingli Group. The terms are under negotiation.

Yingli said RMB 2 billion is planned for Baoding Tianwei Yingli New Energy Resources, a subsidiary in which Yingli holds a 74-percent stake. Up to RMB 1.5 billion is earmarked for wholly owned Yingli subsidiary Yingli Energy China, as well as RMB 1.8 billion wholly owned Fine Silicon.

The news comes just three weeks after Yingli announced the close of RMB 420 million ($61.4 million) in 12-month loans for the same three subsidiaries (see Sun rises on cleantech hotspot in Norway). In that deal, Baoding Tianwei Yingli New Energy Resources received RMB 180 million ($26.3 million) from Shijiazhuang City Commercial Bank, Yingli Energy China received RMB 90 million ($13.2 million) from Shijiazhuang City Commercial Bank and RMB 50 million ($7.3 million) from Bank of Communications, and Fine Silicon received RMB 100 million ($14.6 million) from Baoding Yingli Group.

China has around 140 solar-grade crystalline silicon wafer makers. Estimates are that between 50 percent and 80 percent of Chinese module manufactures have closed their factories since February (see Yingli, Longjitaih partner on new 600MW solar cell maker).

But in December, Yingli said it was maintaining its 2009 outlook, forecasting shipments of between 550 and 600 megawatts of solar cells and a gross margin of at least 24 percent (see China Sunergy, Yingli announce supply deals amid sector turmoil). Yingli said the estimates took into account the expected polysilicon prices, lower prices for photovoltaic modules, and depreciation of the euro against the U.S. dollar (see Dollar's strength hurts SunPower).

Last week, the Chinese Ministry of Finance revealed a new subsidy for installed solar that is expected to help the industry recover from recent price drops along the value chain (see New solar subsidies in China set to reduce installed cost by half).

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