Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world’s largest manufacturers of crystalline silicon photovoltaic (PV) modules, announced today that it has signed a US$50 million convertible loan agreement with IFC, a member of the World Bank Group, to support Suntech’s transition to its Pluto manufacturing technology and debt refinancing requirements.
Suntech’s patent-pending Pluto technology for crystalline silicon solar
cells improves power output by up to 12% compared to conventional
production methods, the company said.
Suntech is permitted to draw the loan upon satisfaction of various conditions, which Suntech believes it will satisfy within 30 days.
The convertible loan has a fixed rate coupon of 5.0% per annum payable on June 15 and December 15 in each year. If not converted, the loan will be repayable in full 7 years after the date of drawdown. The conversion price of the loan is US$18.00 per American depositary share (ADS), which was set at a premium over the average trading price over 20 trading days immediately prior to notice that IFC’s board had approved the convertible loan.
Zhengrong Shi, Suntech’s Chairman and CEO, said, "These additional funds will strengthen Suntech’s financial position and support our transition to the high efficiency Pluto technology as we progress towards our goal of providing grid parity solar solutions."
Suntech designs, develops, manufactures, and markets solar products for electric power applications in the residential, commercial, industrial, and public utility sectors.
Suntech also designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiary Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with Renewable Ventures, a Fotowatio company.
Loading...