The PV industry of China Merchants Bank credit guidelines

Polaris solar PV net news: 12th part is the universal terms, to field a basic explanation, omitted

Third, the PV industry participants

One large power group, national grid company, local power generation and other power industry enterprises, holding and operation of photovoltaic power plants are obtained in order to stabilize the power gains, long-term operation of the power station and high quality requirements, is strong in its own right, now is the PV industry’s major manufacturers, can be used as our main target customers.

Class II is a professional photovoltaic power plant developers, such customer specialized in photovoltaic power plant development, and has the speciality of power engineering, construction technology, photovoltaic power plant contract, BT, BOT business, I preferred to intervene better qualified, better performance and a stable source of repayment of the part of the customer.

Three types of distributed PV power plant owners, big difference on these clients, specific projects should be targeted at specific customers, analyze preferred to intervene.

Four types of upstream the photovoltaic manufacturing companies expand to plant and raw materials industries, such customers to develop power stations are designed to consume their own PV manufacturing capacity, such clients on the development and operation of power stations have no particular advantage, combined with the cash-strapped developed hydropower station’s purpose is to change hands in the power quality and insufficient attention to the long-term operation of, in principle, not be involved in this kind of customer.

Five classes are dedicated to PV asset securitization trusts, investment companies, fund managers, and so on, in the case of basic good asset quality, our business cooperation with powerful institutions.

Four, the PV industry are the main risks

(A) policy change risks. Current PV benefits remains greatly dependent on Government subsidies, over the long term, gradual reduction in the subsidy is determined, if EU subsidies were gradually dropped significantly to PV, PV benefits policy change will affect the stability. In some areas there is a risk subsidy income cannot be put in place for a long time.

(B) plant quality risks. Photovoltaic plant is exposed to the open air, wind, water, ground subsidence, natural environmental factors such as cold, ultraviolet radiation, the natural erosion of photovoltaic power plants will have a greater impact on the quality. PV power station as an emerging industry, existing technologies and materials and experienced time inspection, under cost pressure, power plant components there is a big risk. Authority of the State Department survey showed that 30% built about three years of power plant suffered different degrees of quality problems, has completed three years of high decay rates of the component PV power station 68%, others such as PV modules to yellow burst, scaffold accidents are not uncommon.

(C) the left light up electricity risks. Supporting network construction, the peaking power, regional power grid capacity, power station itself does not meet the technical requirements and other factors, PV possible risk without an Internet connection.

(D) the risk of technological progress. Photovoltaic technology is still in a stage of rapid development, revolutionary technological advances will change the industry landscape, enterprises have a greater impact to the industry.

(E) the financial risks and operational risks. Investing in photovoltaic power plant the subject more, some property owners to earn quick money for the purpose of entering the industry, the actual lack of financial resources, technology and capacity, there are financial risks and operating risks.

V, PV industry policy direction

PV industry is scheduled for my modest into sectors. Considering the Internet, project cost, factors such as strength of the shareholders based on the focus to support the mainstream power business investment in solar energy resource-rich areas of crystal silicon PV grid-connected power generation project, selectively support a distributed power plants, suspended in thin-film PV off-grid PV and PV photovoltaic power plant manufacturing business investment.

(A) the PV industry the customer access line

1. the project has been approved by the national authorities, national environmental impact assessment reports issued by relevant authorities, project construction, water, soil and water conservation plans to obtain approval from relevant authorities; the project close to the national electric power backbone, supporting grid construction is progressing well and the completion of the project, have conditions of grid-connected power generation, grid company written on the Internet made promises or power purchase contracts.

2. centralized ground total PV installed capacity 10,000-kilowatt (inclusive) or more, including Qinghai, Xinjiang, Gansu and Ningxia provinces and total installed capacity of 9,000 kilowatts (or more). Centralized PV dynamic investment cost on the ground not more than 12000 Yuan/kWh, distributed PV power plant project unit cost should be less than RMB 10,000/kW.

3. financial internal rate of return of not less than 10% the project, projects own funds ratio of not less than 30%.

4. in principle projects annual sunlight duration of not less than 2,500 hours, annual utilization hours of not less than 1300 hours of power generation equipment.

5. the centralized financing of terrestrial PV applications has been completed, requires continuous period of not less than 6 months, the continuous period, actual monthly Internet monthly full output power of the power capacity reached 50% (inclusive) or more.

6. project should have photovoltaic power plant construction and operation experience of controlling shareholders, in principle, profit of no less than 100 million Yuan last year, asset-liability ratio not higher than 70%.

(B) risk control

1. participation in syndicated loans in large photovoltaic power plant projects, in principle at 30% per cent of bank financing (included), I will serve as lead, may be relaxed.

2. the loan of our Bank shall in principle not more than 12 years, shall not exceed a maximum of 15 years repayment grace period shall not exceed 1 year and must be used for loan repayment by instalments, in principle the mid-term repayment before annual payments decrease.

3. the required increases in the loan contract, in principle “after the project is completed, if there were any two consecutive years of annual utilization hours less than the project feasibility study at the level of 85%, our Bank to declare a loan in advance of maturity” and other restrictive clauses.

4. the borrower shall provide effective risk mitigation measures covering our bank loan risk, terrestrial concentrating photovoltaic power plant project will have full liability guarantee provided by the controlling shareholder (or shareholders pro rata warranty), go through the PV fixed mortgage, pledge of PV power station and electricity fee pledge and tariff revenue account opened at the Bank. Mortgage loss of utility assets to acquire a property casualty insurance, I conduct the first beneficiary.

5. the procurement of power station components should, in principle, in the strong reputation of the large vendors, review equipment lists, review product quality insurance or certification of China quality certification Center for.

Original title: the PV industry of China Merchants Bank credit guidelines

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