As part of shifting short-term debt to longer term loans, Hanwha SolarOne has raised a three-year US$100 million term loan facility with Export-Import Bank of Korea (KEXIM).
Jay Seo, chief financial officer of Hanwha SolarOne, commented: “This new capital will enhance our ability to support current working capital needs, continues our shift of loans from short to longer term and allows some flexibility in developing our business strategies for the future. We continue to be fortunate to access relatively low-cost funding from offshore sources.”
The company said that the interest rate floats with the three-month LIBOR rate, plus 1.99% per annum. The loan proceeds were said to be used primarily for normal working capital purposes.