NEW YORK (AP) -- Shares of JinkoSolar Holding Co. surged Friday after the company announced that its Swiss subsidiary reached a deal with the Guangdong Branch of China Development Bank for up to $1 billion in financing over a five-year period.
THE SPARK: The Chinese solar products maker said it plans to use the financing to develop its overseas expansion and its merger, acquisition and downstream businesses. The Swiss subsidiary will act as the company's platform to further expand its overseas presence.
THE BIG PICTURE: JinkoSolar said the deal with the bank will give the company a long-term, stable source of capital and a full set of financial services. The final conditions, terms and amount of the financing remain subject to further approvals.
Chinese solar products makers like JinkoSolar have struggled this year amid weak demand, an oversupply of the products on the market and tough competition, which has forced them to slash their prices.
Chinese producers are also facing accusations that they are engaged in predatory pricing in the U.S. and Europe, and that they have received unfair help from the Chinese government.
THE SHARES: Up 57 cents, or 13.8 percent, to $4.69 in midafternoon trading, after peaking at $5.14 earlier in the session. Over the past 52 weeks, the company's shares have traded between $2 and $10.20.
Since the beginning of this year, the shares have lost about 18 percent of their value.