JinkoSolar convertibles sale in Q2 pushes net debt up to $1.2 billion

By Devika Patel

Knoxville, Tenn., Aug. 30 – JinkoSolar Holding Co., Ltd. saw its net debt increase in the last quarter to $1.2 billion from $1.1 billion at the end of the previous quarter, due to the company’s sale of convertible senior notes.

“The increase [in net debt] was due to the issuance of convertible senior notes in the second quarter,” chief financial officer Hai Yun Cao said on the company’s second quarter ended June 30 earnings conference call on Monday.

As of June 30, the company had RMB 4.81 billion, or $701.1 million, in cash and cash equivalents and restricted cash, compared with RMB 4.36 billion as of March 31.

As of June 30, the company's total interest-bearing debts was RMB 13.34 billion, or $1.94 billion, compared with RMB 12.04 billion as of March 31.

On May 15, the company priced $85 million of five-year convertible notes in a Regulation S offering.

Credit Suisse (Hong Kong) Ltd. was placement agent.

The company also entered into zero strike call option transactions that have an expiration date of July 28, 2021 to facilitate the hedge activity of the initial purchasers of the notes.

Proceeds from the notes offering will be used in part to fund the zero strike call options and also will be used for general corporate purposes, including capital expenditures for capacity expansion and upgrade and working capital.

JinkoSolar is a Shanghai-based solar power product manufacturer.

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