Bolstering its finances ahead of a major technology transition, Suntech Power Holdings Co., Ltd. has secured a convertible loan agreement worth $50 million with IFC, a member of the World Bank Group. Suntech has earmarked the funds for debt refinancing and to support the company’s transition to the Pluto technology approach, which is based on the PERL (passivated emitter with rear locally diffused) cell technology and has demonstrated world-record lab efficiencies of 25%.
Suntech has received permission to draw the loan on condition that a number of stipulations are satisfied. The convertible loan has a fixed rate coupon of 5.0% per annum, which must be paid on June 15th and December 15th for each year of the loan’s duration. In the case that the loan is not converted, it will be repaid within seven years of the drawdown date. The loan’s conversion price stands at US$18.00 per American depositary share (ADS).
“We are pleased that IFC, a world class investment institution that supports sustainable development, has agreed to provide Suntech with a convertible loan of $50 million,” said Dr. Zhengrong Shi, Suntech’s Chairman and CEO. “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.”
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