GCL Poly closes USD-225m bond issue

Chinese firm GCL-Poly Energy Holdings Ltd (HKG:3800) said Wednesday it raised USD 225 million (EUR 205.7m) in bond sale proceeds to redeem existing notes.

The company makes silicon wafers and polysilicon for the photovoltaic (PV) industry and operates different types of power plants. As previously disclosed, it will use the remaining USD-17-million net proceeds for capital expenditure and general corporate purposes.

The bonds due 2019 were sold to PA International Opportunity III Ltd. They have a coupon of 0.75% per year and will be convertible into 670.9 million shares at an initial price of HKD 2.60 (USD 0.34/EUR 0.31) per share. If fully converted, they will represent some 4.15% of the total shares outstanding of the company.

In a separate statement on Tuesday, the firm unveiled that its unit GCL-Poly (Suzhou) New Energy Co Ltd has issued CNY 650 million (USD 104.7m/EUR 95.7m) of short-term notes due 2016 along with CNY 500 million of medium-term notes due 2018 to financial institutions in China. The CNY-1.14-billion net proceeds will be used by the group for working capital and to repay existing bank loans, the parent noted.

(USD 1.0 = EUR 0.914)

(HKD 1.0 = USD 0.129/EUR 0.118)

(CNY 1.0 = USD 0.161/EUR 0.147)

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