GCL Poly inks USD-172m sale-leaseback deal for polysilicon plant

Chinese firm GCL-Poly Energy Holdings Ltd (HKG:3800) said Thursday it will sell and then lease back one of its polysilicon manufacturing facilities under a deal with Dao Sheng International Financial Leasing Co Ltd.

The current owner of the factory, Jiangsu Zhongneng Polysilicon Technology Development Co Ltd, will receive CNY 1.11 billion (USD 172m/EUR 156m) for certain equipment, buildings and machinery for the production of polysilicon. Subsequently, GCL Poly’s unit will start paying the sum back in three separate instalments to lease the assets for five years.

Jiangsu Zhongneng will be able to buy the plant back after the lease period ends. The move is expected to improve its financing structure, similar to securing long-term financing with a comparatively lower interest rate of 7.5%, the parent explained.

Hong Kong-based GCL Poly makes silicon wafers and polysilicon for the photovoltaic (PV) industry and operates solar power plants. A few days ago, it unveiled plans for a joint venture (JV) with China Integrated Circuit Industry Investment Fund Co Ltd (CIF), looking to create a new 5,000-tonne polysilicon production plant worth CNY 2 billion in total.

(CNY 1.0 = USD 0.155/EUR 0.140)

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