Chinese PV manufacturer LDK Solar has secured a RMB2 billion (US$320 million) loan from a consortium of investors led by the China Development Bank.

According to a Bloomberg report, the manufacturer will use RMB400 million (US$64 million) of the money for a new polysilicon project and the remainder to boost cash reserves.

LDK Solar has been clawing its way back into contention as an operational company since defaulting on bond repayments earlier this year and then suffering the indignity of being delisted from the New York Stock Exchange.

The loan to LDK comes in spite of the company failing to make it on to a list published earlier in the year of companies that had met official ‘PV industry standards’ and would therefore receive favourable treatment in terms of state support and procurement programmes.

At the time, commentators said the so-called cull list would not harm large companies such as LDK, which are seen as ‘too big to fail’.

Indeed, according to one analyst quoted by Bloomberg, the LDK loan, which has come from 11 investors, is an indication of the Chinese government’s willingness to support the PV industry.

Yang Kun, a bond analyst in Shanghai at Guotai Junan Securities, said: “The worst is over for China’s solar industry. These loans show the government is supporting the company and the industry. It’s unlikely LDK will default on other borrowings in the future.”

The loan will be a further piece of good news for LDK, which has closed two large wafer contracts in recent months.