Tuesday, November 4, 2008

Renesola subsidiary refinances

Mon 03 Nov 2008

LONDON (SHARECAST) - Solar wafer producer ReneSola saw its share price heat up after it said its principal operating subsidiary has secured additional credit lines.

Two of China's largest banks, Industrial & Commercial Bank of China and the Agricultural Bank of China have agreed to provide ReneSola subsidiary Zhejiang Yuhui Solar Energy Source with additional credit lines of RMB1.06bn between them. The new credit facilities take Zhejiang Yuhui's credit lines to around RMB2.8bn.

"While our capacity expansion for 2008 is fully financed and our cash position remains healthy, the additional credit lines committed to us by two leading Chinese banks demonstrate their strong recognition and confidence in ReneSola notwithstanding the current volatility of the financial markets," said Xianshou Li, ReneSola's chief executive officer.

ReneSola said its expects third quarter revenues to be in the $210m to $220m range, and production to be higher than previously indicated at around 100 megawatts to 103 megawatts (mw). Previously the company had guided analysts to expect third quarter output of 90mw to 95mw.

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