Dec. 16, 2011 (China Knowledge) - Shanghai Chaori Solar Energy Science<002506>, a solar cell component manufacturer and distributor in China, yesterday inked an agreement to acquire EUR 1 billion loan from China Development Bank, a state-controlled bank primarily responsible in raising funds for large infrastructure projects in the country.

Under the terms of the agreement, the fund will be used for the solar firm's research and development, technology upgrading, facility construction and operation management.

In September, Shanghai Chaori Solar announced plans to invest EUR 60 million in a subsidiary Hong Kong Chaori Solar Energy Science & Technology Co Ltd to build overseas plants.

The subsidiary has also received approval to launch a wholly-owned subsidiary Sunpeak Universal Holdings Inc with a registered capital of US$0.1 million in the U.S. for the development of a local solar plant.

Shenzhen-listed Shanghai Chaori Solar said it expects to add solar module shipments of 250 megawatts (mW) annually in the next few years, adding that sales prices are estimated to increase by 20% more, compared to the market prices.