Xinyi Solar sells USD 69.3m of shares to back PV projects
Solar modules in China. Featured Image: zhu difeng/Shutterstock.com
Xinyi Solar Holdings Ltd (HKG:00968) said Monday it has raised HKD 537 million (USD 69.3m/EUR 64.5m) in net proceeds from the sale of newly issued stock to finance photovoltaic (PV) power projects and manufacturing capacity.
Hong Kong-based Xinyi Solar is focused on the making of solar glass, but as part of its expansion into the downstream solar power generation segment it currently operates four ground-mounted solar farms, totaling 320 MW, and has 614 MW more under construction and development. The firm plans to use the proceeds to cover capital expenditure related to such projects and to a planned solar glass production expansion, as well as for general working capital.
To boost the company's capital, parent Xinyi Glass Holdings (HKG:0868) sold 168.8 million of existing Xinyi Solar stock under a placing agreement. Immediately after that it bought the same amount of new shares in the subsidiary under a top-up subscription agreement. Via the move, it reduced its stake in Xinyi Solar from 27% to 26.4%.
Citigroup Global Markets Ltd acted as the sole placing agent and sold the existing Xinyi Solar shares at HKD 3.22 apiece to at least six subscribers. The amount represents 2.5% of the company’s outstanding share base after the issue.