Financing of Solar Projects from China Development Bank

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While there are the financing support to the project developers opting for the Chinese modules and BoS. This is a cheaper source of debt funding available to the project developers for which the interest rate work out to be of the order of 9% and makes solar PV investment fianncial viable. Following are the typical terms through CDB provide financing of solar projects.

  • Borrower is of a good credit status and capable to pay back loan and interest;
  • Contract value above 2 million USD, and agrees with the terms of the Export buyer’s Credit;
  • Chinese elements should worthy more than 50% of the contract value; for the international contracting
  • project,
  • Borrower should provides sanctified repayment guarantee
  • Borrower should be insured by insurance institution if necessary;

The typical documentation for securing the CDB financing are

  • Commercial contract
  • Introduction of borrower;
  • Introduction of the secured party;
  • The statutory clearances and approvals  of the project from government;
  • DPR of the project;

 

CDB  provides loan for a period of 10 years with a typical  debt equity ratio of 85:15.

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