Suntech inks $ 50 million loan agreement with IFC

Suntech’s patent-pending Pluto technology allows the production of crystalline silicon solar cells with higher power output levels by up to 12%. Image sourced from Suntech

China’s Suntech Power Holdings Co., Ltd, has entered into a $50-million convertible loan agreement with IFC, a member of the World Bank Group, to support Suntech’s move to the high-efficiency Pluto technology and debt refinancing requirements.

A fixed rate coupon of 5% per annum that is payable on the 15th of June and December in each year is included in the convertible loan agreement. If not converted, the loan must be repaid in full seven years after the date of the drawdown. The loan may be converted at a price of $18 per American depositary share (ADS). The conversion price was set at a premium over the average trading price.

Dr. Zhengrong Shi, Chairman and Chief Executive Officer of Suntech, was delighted that IFC has agreed to provide Suntech with a convertible loan of $50 million. "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," he said.

Based in Jiangsu Province, China, Suntech Power Holdings Co., Ltd., is the largest manufacturer of crystalline silicon photovoltaic modules in the world, providing solar products for customers in the residential, commercial, industrial, and public utility sectors. The company’s Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional methods of production.


-  Natassia Y. Laforteza

Sources:

¹ http://phx.corporate-ir.net/phoenix.zhtml?c=192654&p=irol-newsArticle&ID=1303358&highlight=
² http://www.suntech-power.com/