North Coast Solar Stocks

June 30, 2009

Suntech Signs $50 Million Convertible Loan Agreement with IFC

Filed under: STP — Tags: , , , — Jason @ 9:24 am

Tuesday June 30, 2009, 9:24 am EDT

SAN FRANCISCO, Calif., and WUXI, China, June 30 /PRNewswire-Asia/ — Suntech Power Holdings Co., Ltd. (STP), the world’s largest manufacturer 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 the high efficiency Pluto technology and debt refinancing requirements. Suntech is permitted to draw the loan upon satisfaction of various conditions precedent, 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.

“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.”

“IFC is pleased to support Suntech, one of the leaders in the solar PV industry,” said Randall Riopelle, Manager, Global Manufacturing & Services Department. “We are pleased to be partnering with a company focused on developing best in class technology and which has demonstrated a firm commitment to the highest corporate responsibility standards. We look forward to working with Suntech as solar energy becomes an increasingly important source of renewable energy for China and for the world.”

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, please visit http://www.ifc.org.

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