Jinko Power to hedge euro exposure on project

Jinko Power Technology (SSE:601778) announced plans to engage in foreign exchange derivatives trading, primarily forward currency sales, to hedge against Euro exchange rate fluctuations. The move aims to control construction costs for the Antequera 175 MW solar power plant project in Spain, for which Jinko Power has an engineering, procurement and construction (EPC) agreement. The board has already approved the plans. The company's total exposure will not exceed €15 million, with no single day's exposure exceeding €80 million. Jinko Power will be dealing with Deutsche Bank's Hong Kong branch. These hedging activities are designed to mitigate exchange rate risk and not for speculative purposes. Jinko Power plans to transfer the project company (after it's built) to China Huadian.