China’s Trina Solar Ltd. has signed an agreement with PingAn Trust Co. and Jiangsu Jiuzhou Investment Group to jointly develop solar photovoltaic power plants in the country that will have up to 1,000 megawatts of total capacity by 2018.
Under the terms of the agreement, PingAn Trust and Jiangsu Jiuzhou will enter convertible loan arrangements with Trina Solar for the projects. The two companies are entitled to convert the loans into minority stake in the project companies at pre-determined time.
PingAn Trust and Jiangsu Jiuzhou are also entitled to participate in the potential capital operation of Jiangsu Trina Solar Power Investment & Development Co., Ltd. which was set up as holding company at the end of 2014. The two companies will also provide bridge loans after completing due diligence on the projects in order to meet their funding needs during the construction phase.
The convertible loans and the bridge loans will not prevent the project companies from applying for long-term loans from other financial institutions. The Company and Investors are actively evaluating the portfolio of projects that need to be financed.