United PV to sell bonds ahead of 300-MW solar acquisition
Solar panels in China. Featured Image: zhu difeng/Shutterstock.com
Dec 30, 2014 - United Photovoltaics Group Ltd (HKG:0686) said today it intends to sell HKD 1.26 billion (USD 162.4m/EUR 133.5m) worth of convertible notes to help fund the potential acquisition of about 300 MW of solar capacity in China.
Hong Kong-based United PV, part of investor and plant operator China Merchants New Energy Group (CMNE), has entered into a non-legally binding framework agreement to sell convertible bonds to Chinastone Capital Management Ltd. The three-year bonds will have an interest rate of 7.5% per year and will be convertible into shares at an initial price of HKD 1.03.
United PV stressed that a definitive agreement with Chinastone is yet to be sealed.
The group, which develops and operates solar plants, intends to use the net proceeds of the bond sale to finance the purchase of certain companies that own roughly 300 MW of Chinese solar parks. It did not give details about the targets.
Chinastone is equally owned by Ping An Insurance Group (HKG:2318) and San Shan (HK) Ltd.