Wuxi, China [RenewableEnergyWorld.com] Suntech Power Holdings Co. Ltd. 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 technology and debt refinancing requirements. The convertible loan has a fixed rate coupon of 5.0% per year, which is payable on June 15 and December 15 in each year.
If not converted, the loan must be repaid in full seven years after the date the money is officially drawn. 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.
“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,” said Dr. Zhengrong Shi, Suntech’s chairman and CEO.