China Eximbank provides $62 million loan for Solar Cell and Solar Module Production Line Project (Linked to Record ID#62478)

Project narrative

In January 2015, the U.S. Department of Commerce finalized anti-dumping duty rates of 52% and anti-subsidy rates of 39% on the import of Chinese solar panels. Two months later, in March 2015, Jinko Solar Holding Co., Ltd. (晶科太阳能) announced plans to construct a solar cell and module manufacturing facility in Penang State within Malaysia. It reportedly decided to build the facility in order to avoid the imposition of countervailing duties and anti-dumping duties in the U.S. Then, on August 3, 2015, China Eximbank issued two separate loans to Jinko Solar Holding Co., Ltd. (晶科太阳能) for the Solar Cell and Solar Module Production Line Project: an RMB 50 million loan (captured via Record ID#62478) for near-term working capital and a $62 million loan (captured via Record ID#62477) for long-term fixed assets and mid-term working capital. The borrowing terms of these loan are unknown. The borrower was to use the proceeds from the two loans to support a solar cell and solar module production facility (factory) in the Perai Free Industrial Zone (Perai FIZ) within the city of Seberang Perai and the state of Penang. The factory was officially inaugurated and put into operation on May 26, 2015. It had an initial designed annual production capacity of 500MW for solar cells and 450MW for solar modules and it now employs more than 5,000 people (nearly 80% of whom are locally recruited). After the factory was put into operation, it underwent several expansion phases. Phase 2 commenced in January 2016 and ended in June 2016. Phase 3 began during the second half of 2016. As of the end of 2017, the project had achieved 1700MW and 1300MW of solar cell capacity and solar module capacity, respectively. As of the end of 2018, the project had constructed 7 separate factories in the Perai FIZ and achieved 3500MW and 3000MW of solar cell capacity and solar module capacity, respectively. In 2020, a new implementing Agency, Risen Energy, joined the project. In 2020, a new implementing Agency, Risen Energy, joined the project.