North Coast Solar Stocks

March 27, 2009

Yingli Green Energy Announces Potential New Credit Facilities

Filed under: YGE — Tags: , , , , — Jason @ 7:00 am

Friday March 27, 2009, 7:00 am EDT

BAODING, China, March 27 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (YGE; “Yingli Green Energy” or the “Company”), one of the world’s leading vertically integrated photovoltaic (“PV”) product manufacturers, today announced that Baoding Yingli Group Company Limited (“Yingli Group”), an affiliate of the Company, has entered into a strategic cooperation agreement with the Hebei Branch of Bank of China, which contemplates potential credit facilities in the aggregate maximum amount of RMB 6 billion to be granted to entities affiliated with Yingli Group, including three PRC subsidiaries of Yingli Green Energy.

Under the terms of the strategic cooperation agreement, subject to internal procedures to be conducted in accordance with its risk management and operational regulations, the Hebei Branch of Bank of China expects to grant, among other credit facilities, (i) credit facilities with an aggregate maximum amount of RMB 2 billion to Baoding Tianwei Yingli New Energy Resources Co., Ltd., a 74%-owned subsidiary of Yingli Green Energy, (ii) credit facilities with an aggregate maximum amount of RMB 1.5 billion to Yingli Energy (China) Co., Ltd., a wholly owned subsidiary of Yingli Green Energy, and (iii) credit facilities with an aggregate maximum amount of RMB 1.8 billion to Fine Silicon Co., Ltd., a wholly owned subsidiary of Yingli Green Energy. In addition to the internal procedures to be conducted by the Hebei Branch of Bank of China, each of the three PRC subsidiaries of Yingli Green Energy will need to negotiate the detailed terms of the credit facilities and related credit agreements before the relevant credit facilities may be granted. Therefore, no assurance can be given that the credit facilities will be eventually granted to these PRC subsidiaries of Yingli Green Energy as currently contemplated in the strategic cooperation agreement or at all.

“We are pleased that Yingli Group has entered into this strategic cooperation agreement, which we believe will benefit us in helping us secure additional credit facilities, thereby providing us additional financial resources to expand our PV production capacity, commence our polysilicon production and further strengthen our capital position as well as providing us with additional flexibility in business and financial planning,” commented Mr. Zongwei Li, Chief Financial Officer of Yingli Green Energy. “In order to maintain cash flow flexibility in this challenging economic environment, we will continue to actively source long- and short-term financings both domestically and internationally.”

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