LDK Solar Gets $256 Million Credit Facility From Banks

LDK Solar Co., China’s second-biggest maker of solar wafers, signed an agreement with 11 banks for a 1.56 billion yuan ($256 million) credit facility.

The funds will be limited to operations in LDK’s home province of Jiangxi by its unit Jiangxi LDK Solar Hi-Tech Co. and cannot be used to pay down debt, the Xinyu, China-based company said today in a statement. The first drawdown of 200 million yuan was approved and completed today.

The loan will help it increase production when needed, Sam Tong, its president and chief executive. said in the statement.

“When the global solar industry regains strength, we are committed to taking advantage of new opportunities that emerge,” he said.

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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