CHANGZHOU, China, Feb. 12, 2015 /PRNewswire/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a global leader in photovoltaic ("PV") modules, solutions and services, today announced that it has signed a framework investment agreement (the "Agreement") with PingAn Trust Co., Ltd. ("PingAn Trust") and Jiangsu Jiuzhou Investment Group ("Jiuzhou Investment," and together with PingAn Trust, the "Investors") to jointly develop selected photovoltaic power plants ("the Projects") in China, with a total capacity of 500MW-1,000MW over the next three years.
Under the terms of the agreement, the Investors will enter convertible loan arrangements with Trina Solar to support the development of downstream projects in China. The Investors are entitled to convert the loans into minority stake in the project companies at pre-determined time. The investors are also entitled to participate in the potential capital operation of the holding vehicle in the future. To capitalize on growing demand in China and to strengthen Trina Solar's efforts in the downstream business the Company established Jiangsu Trina Solar Power Investment & Development Co., Ltd. under the above-mentioned holding vehicle at the end of 2014.
In addition, the Investors will provide bridge loans after completing due diligence on the Projects in order to meet their funding needs during the construction phase. The convertible loans and the bridge loans will not prevent the project companies from applying for long-term loans from other financial institutions. The Company and Investors are actively evaluating the portfolio of projects that need to be financed.
"We are excited to partner with strategic investors such as PingAn Trust and Jiuzhou Investment," said Mr. Jifan Gao, Chairman and Chief Executive Officer of Trina Solar. "By leveraging their financial strengths with our proven expertise in manufacturing and power plant development, we have a unique ability to build a superior and professional downstream development and operation company. In recent years, China's demand for new energy has been growing quickly. According to the government's plan, China's photovoltaic power installation capacity will reach over 100GW by 2020. Ever since the full-scale launch of our downstream business in 2013, we have made a number of significant achievements. In 2015, we will use this strategic collaboration as an opportunity to further reinforce and expand our leading position in China's PV market."
"We are delighted to work with Trina Solar to jointly develop solar projects in China that will generate stable and recurring cash flows in line with our investment strategy and the Chinese government's objectives," said Mr. Yuhang Li, General Manager of Industry Department of PingAn Trust. "We are excited to work with the leading company in the solar industry, and we believe the combination of the financing from the investors along with Trina Solar's industry expertise will be a win-win for all parties."
Mr. Shijin Luo, President of Jiuzhou Investment, added, "Jiuzhou Investment was a first round PE investor in Trina Solar prior to its initial IPO and has witnessed the Company's development into a leading player in the global PV industry. We are pleased to team up with Trina again to develop this downstream business. China is now in a new era of energy reform as it looks to promote green energy including solar energy production and consumption. As the world's largest solar module manufacturer with an established global brand, Trina Solar has made steady progress in the downstream business in recent years. We view Trina as a trusted partner for our move into the solar energy business."
About Trina Solar Limited
Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company's industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.
About PingAn Trust Co., Ltd.
PingAn Trust Co., Ltd. ("PingAn Trust") was established on 9 April 1996 and is a subsidiary and integral part of PingAn Insurance (Group) Company of China Ltd. ("Ping An"), which is listed on the Hong Kong Stock Exchange (2318.HK) and the Shanghai Stock Exchange (601318). PingAn Trust has successfully developed each of its businesses and maintains excellent asset quality. It also boasts a sound corporate governance structure, a comprehensive risk control mechanism, a powerful informational support system and an outstanding professional investment management team. PingAn Trust's asset quality ranks among the best trust companies in China. For more information, please visit http://about.pingan.com/xintuo/index.shtml.
About Jiangsu Jiuzhou Investment Group
Jiangsu Jiuzhou Investment Group ("Jiuzhou Investment") started its venture capital business in 2004 and is now a professional institution that provides comprehensive solutions for domestic and overseas investments and capital deployment. Jiuzhou Investment, as a core member of the Jiangsu Venture Capital Association, manages 5 funds with RMB3.3 billion of total assets under management. Jiuzhou Investment provides financing and strategy consulting services to companies throughout their lifecycle, including for IPOs, mergers and acquisition, restructuring and other financing. Jiuzhou Investment focuses on high-growth companies in new energy, new materials, clean technology and other areas. A number of its investment projects have been publicly listed. For more information, please visit http://www.jiuzhouinvest.com/ct_index.html.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance its activities; the effectiveness, profitability and marketability of its products; the future trading of the securities of the Company; the Company's ability to operate as a public company; the period of time for which the Company's current liquidity will enable the Company to fund its operations; general economic and business conditions; demand in various markets for solar products; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
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SOURCE Trina Solar Limited