International Finance Corporation will invest up to $60 million in Malaysia’s solar power Jinko Malaysia to support the ×rm’s technology investment and related working capital needs at its existing production facilities in Penang. Jinko Malaysia, the local arm of China-based JinkoSolar Holding Co Ltd, will use the funds for a $100-million project to upgrade its existing solar cell production lines to a technology called Passivated Emitter Rear Cell (PERC) that increases energy conversion and reduces system costs.
The investment from IFC, an arm of The World Bank, will be in two parts — $40 million of IFC A Loan from IFC’s own account and $20 million mobilised via its Managed Co-Lending Portfolio Program (MCPP), according to an IFC disclosure. This is the second investment within a week from IFC in the renewable energy sector in Asia. Earlier this week, it disclosed a $29 million investment in renewable energy ×rm Fotowatio Renewable Ventures (India) Pvt Ltd (http://www.dealstreetasia.com/stories/indiafotowatio-renewable-to-raise-upto-29m-from-ifc-via-ncds-71216/) through non-convertible debentures. Jinko Malaysia, which started operations in 2015, manufactures solar energy cells and modules, and related auxiliary products. It operates solar cell and module manufacturing facilities with production capacities of 1500 MWp and 1300 MWp respectively. Its Chinese parent company JinkoSolar is a company founded in China’s Jiangxi province and is a vertically integrated manufacturer of crystalline silicon (c-Si) solar modules.
Starting with recovered silicon materials, supplemented by virgin polysilicon, the company produces monocrystalline and multi-crystalline ingots, wafers, cells, and modules. The bulk of the modules produced by Jinko are sold internationally. Its manufacturing facilities are located in the Jiangxi and Zhejiang provinces in southeast China. The company is also increasing manufacturing capacity at its plants in Malaysia and South Africa. Meanwhile, IFC is increasingly becoming an important player in the private investment and venture capital space in Southeast Asia. In an interaction with DEALSTREETASIA last year, Pravan Malhotra, who leads IFC’s investments in South Asia, Southeast Asia, and clean technology sector, had mentioned the region was a growing market for the ×rm. “Supporting inclusive growth is one of IFC’s priorities in the region. We invest in projects that help create opportunities in all segments of society,” he had said.