On September 6, Korea Eximbank announced plans for provision of USD 295 million to Hanhwa Chemical for the company's bid to acquire Solarfun, the 4th leading manufacturer of solar modules in the world.

Korea Eximbank will provide loans to cover 80% of the USD 370 million needed to acquire a 49.9% stake in Solarfun.

Solarfun, listed on NASDAQ, was established in 2004 in China and has global networks throughout Europe and the US.

Through this acquisition, Hanhwa Chemical will be able to achieve vertical integration from ingots, wafers, solar cells, to modules.

Working in close partnership with Hanhwa Chemical from the initial stages of the acquisition project, Korea Eximbank provided the large amount of funding, which is a key factor for a successful M&A.

The solar power industry has achieved remarkable growth rates in the last decade with an average of 45% annually as it is one of the main sectors in the new and renewable energy industry.

In Korea, exports in the solar power industry increased by 240% year-on-year in 2009 to total USD 1.5 billion. However, there are no Korean market leaders in the industry aside from basic material sectors such as polysilicon.

According to Korea Eximbank, "The recent acquisition could provide a strong impetus to help Korean companies become global leaders in the field. We plan to actively assist Korean companies increase competitiveness by financing M&As."