Hanergy receives 20b yuan credit line

China's largest private hydropower operator Hanergy Holding Group signed a strategic framework with China Minsheng Banking Corp and the Asia Financial Cooperation Association, which will support the energy company by giving it a credit line worth at least 20 billion yuan ($3.28 billion).

The three parties signed the framework in Beijing on Wednesday.

The partnership will help the company to expand its businesses in the thin-film photovoltaic solar sector, which is currently the company's major focus besides hydropower stations.

According to the deal, Hanergy will receive other kinds of financial assistance from the two institutions through direct financing, indirect financing and new financing tools.

The fund will primarily be used to integrate the thin-film solar stations and build more clean energy manufacturing bases.

Li Hejun, chairman of Hanergy, said the company has realized a solar-electricity conversion rate of 15.7 percent through technology upgrades.

In previous years, the company acquired leading solar companies including Solibro, MiaSolé and Global Solar Energy.

Shi Jie, assistant to president of Minsheng Bank, said the bank should take advantage of this opportunity by providing more financial support to China's new energy sector.

"Technology is the core of new energy industry. With the credit, companies such as Hanergy will be able to strengthen their research, development and manufacturing of clean energy products,"said Huang Rong, vice-chairman of the All-China Federation of Industry and Commerce.

Asia Financial Cooperation Association, a regional financial cooperation organization made up by small- and medium-sized banks and non-bank financial institutions, was launched in April 2012.

Contact the writer at dujuan@chinadaily.com.cn