IFC to invest $60m in solar power firm Jinko Malaysia

IFC to invest $60m in solar power firm Jinko Malaysia

International Finance Corporation (IFC) will invest up to $60 million in
Malaysia's solar power firm Jinko Malaysia to support the firm's technology
investment and related working capital needs at its existing production
facilities in Penang.

Jinko Malaysia, the local arm of China-based JinkoSolar Holding Co Ltd, will
use the funds for a $100-million project to upgrade its existing solar cell
production lines to a technology called Passivated Emitter Rear Cell (PERC)
that increases energy conversion and reduces system costs.

The investment from IFC, an arm of The World Bank, will be in two parts -
$40 million of IFC A Loan from IFC's own account and $20 million mobilised
via its Managed Co-Lending Portfolio Program (MCPP), according to an IFC
disclosure.

This is the second investment within a week from IFC in the renewable energy
sector in Asia. Earlier this week, it disclosed a $29 million investment in
renewable energy firm Fotowatio Renewable Ventures (India) Pvt Ltd through
non-convertible debentures.

Jinko Malaysia, which started operations in 2015, manufactures solar energy
cells and modules, and related auxiliary products. It operates solar cell
and module manufacturing facilities with production capacities of 1500 MWp
and 1300 MWp respectively.

Its Chinese parent company JinkoSolar is a company founded in China's
Jiangxi province and is a vertically integrated manufacturer of crystalline
silicon (c-Si) solar modules. Starting with recovered silicon materials,
supplemented by virgin polysilicon, the company produces monocrystalline and
multi-crystalline ingots, wafers, cells, and modules.

The bulk of the modules produced by Jinko are sold internationally. Its
manufacturing facilities are located in the Jiangxi and Zhejiang provinces
in southeast China. The company is also increasing manufacturing capacity at
its plants in Malaysia and South Africa.

Meanwhile, IFC is increasingly becoming an important player in the private
investment and venture capital space in Southeast Asia. In an interaction
with DEALSTREETASIA last year, Pravan Malhotra, who leads IFC's investments
in South Asia, Southeast Asia, and clean technology sector, had mentioned
the region was a growing market for the firm.

"Supporting inclusive growth is one of IFC's priorities in the region. We
invest in projects that help create opportunities in all segments of
society," he had said.

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Link to Original Article:
http://www.dealstreetasia.com/stories/ifc-invests-60m-in-solar-power-firm-ji
nko-malaysia-71417/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com