JinkoSolar’s board has approved a proposal to issue GDRs on the Frankfurt Stock Exchange. The GDRs, backed by newly issued A-shares in China, mark a significant step in the company’s overseas expansion.
The funds, capped at CNY 4.5 billion, will support several projects. JinkoSolar plans to invest CNY 500 million in a 1 GW advanced solar module manufacturing facility in Florida. It will use another CNY 2.74 billion to fund the second phase of its 56 GW integrated manufacturing project in Shanxi province, China, which includes a 14 GW module production plant. The remaining CNY 1.26 billion will go toward working capital and debt repayment.
The Shanxi project, announced in May 2023, will be the world’s largest integrated solar manufacturing base, with a 56 GW of capacity and a total investment of CNY 56 billion. It will combine wafer, cell, and module production, with a focus on n-type solar technology.
The GDR issuance plan has passed JinkoSolar’s board, but still needs approvals from shareholders, the Shanghai Stock Exchange, the China Securities Regulatory Commission (CSRC), and German regulators, including the Frankfurt Stock Exchange and the Federal Financial Supervisory Authority (BaFin).
JinkoSolar said that the new A-shares represented by the GDRs will not exceed 10% of its total share capital before the issuance. The company also warned that the issuance could dilute earnings per share and return on equity over the short term.
If successful, JinkoSolar will be the first Chinese solar company listed on stock exchanges in China, the United States, and Germany, setting a new precedent in the global solar industry.
This announcement follows a similar move by Sungrow, a Chinese solar inverter manufacturer, which plans to issue GDRs in Frankfurt to raise CNY 4.88 billion to support its energy storage business and inverter production.
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