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China Eximbank contributes $50 million to $200 million syndicated loan for 1GW monocrystalline solar cell manufacturing plant in Shama Jaya Free Industrial Park
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | LONGi Green Energy Technology Co. Ltd. |
| Country | Malaysia |
| Start Date | Mar 01, 2018 |
| End Date | Apr 16, 2030 |
| Duration | 4,429 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 92510 |
Grant Description
In 2018, ICBC and China Eximbank contribute to USD 200 million syndicated loan for 1GW monocrystalline solar cell manufacturing plant in Shama Jaya Free Industrial Park, Malaysia In March 2018, LONGi Green Energy Technology Co.
Ltd. (Chinese: 隆基绿能科技股份有限公司) signed a $200 million syndicated loan agreement with a group of Chinese state-owned banks.
The participants in the loan syndicate included Industrial and Commercial Bank of China (Asia), Industrial and Commercial Bank of China (Malaysia) Berhad, and the Shaanxi Branch of the Export-Import Bank of China.
Industrial and Commercial Bank of China (Asia) was mandated as sole arranger of the transaction and it contributed approximately $100 million to the syndicate.
Industrial and Commercial Bank of China (Malaysia) Berhad and the Shaanxi Branch of the Export-Import Bank of China each contributed approximately $50 million to the syndicated loan.
The individual bank contributions are captured via the following AidData records: ICBC (Malaysia) (Record ID #92509), ICBC (Asia) (Record ID #109630), China Eximbank (Record ID #92510). The loan carried a 5-year maturity and it was backed by a corporate guarantee from LONGI (H.K.) Trading Limited.
The borrower was expected to use the loan proceeds to build a new 1GW monocrystalline solar cell manufacturing plant in the Shama (Sama) Jaya Free Industrial Park, Kuching City, Sarawak, Malaysia. Prior to the issuance of the syndicated loan, LONGi Green Energy Technology Co.
Ltd. owned and operated a 500MW mono solar cell and 500MW of module assembly production in the in the Shama Jaya Free Industrial Park, Kuching City, Sarawak, Malaysia. LONGi Green Energy Technology Co.
Ltd. said that the capacity expansion — financed with the proceeds of the syndicated loan — was intended to meet demand in overseas markets and further expand its manufacturing footprint outside China.
The additionally capacity was originally expected to come online in 2019, providing the company with a total of 6GW of in-house mono cell capacity. However, the expansion project appears to have been delayed by the Covid-19 global pandemic.
In February 2022, the company announced that it expected to complete the expansion project by the end of the third quarter of 2022.
Staff Comments
- LONGi Green Energy Technology Co. Ltd. (Chinese: 隆基绿能科技股份有限公司), which is also known as the LONGi Group (隆基股份), is a major Chinese manufacturer of photovoltaic solar modules and a developer of solar power projects. LONGi Green Energy Technology Co. Ltd., which was formerly known as Xi'an Longi Silicon Materials Corporation, is the world largest manufacturer of monocrystalline silicon wafers and is listed on the Shanghai Stock Exchange.
- The Industrial and Commercial Bank of China (Asia), or more commonly known as ICBC (Asia) is a licensed bank incorporated in Hong Kong. It is a subsidiary of the Industrial and Commercial Bank of China.
- Some sources suggest that ICBC (Asia) may have issued another $100 million loan for this project in 2019. This issue warrants further investigation.
Sources & References
- ICBC (Asia) Hosts “Belt and Road” Cross-Border Financial Forum and Sets Up Asia Pacific Syndicated Loan Centre Actively Rolls Out ICBC Group’s Comprehensive Cross-border Financial Strategies
- Southeast Asia: Best Chinese Bank in the Region for BRI 2018
- LONGi to build new 1GW mono solar cell plant in Malaysia
- LONGi secures major polysilicon supply deal from OCI Malaysia and 46GW of solar glass from Flat Glass
- 隆基绿能科技股份有限公司 关于为全资子公司提供担保的公告
- 隆基绿能科技股份有限公司 关于为全资 子 公司提供担保的公告
- Malaysia Solar Sector Poised For Stronger Growth
- LONGi Kuching's RM 1.789 billion investment to provide 1,730 employment opportunities to locals
- Sama Jaya Free Industrial Zone
- Southeast Asia: Best Chinese Bank in the Region for BRI 2019
- Southeast Asia: Best Bank for Infrastructure/Project Finance in the Region 2019
- HOW CAN PRIVATE SECTOR FINANCIAL INSTITUTIONS ACCELERATE GREEN FINANCE AND TRANSITION TO A LOW CARBON ECONOMY IN SOUTHEAST ASIA?
- Southeast Asia: Best Chinese Bank in the Region for BRI 2019 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
LONGi Green Energy Technology Co. Ltd.
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