GCL produces one more $85 million with new shares and also 100 MW project sale
- The polysilicon supplier, which is bent on slimming down its capital-intensive project development service, has actually generated one more windfall to go in the direction of servicing its burdensome financial obligation stack.
Debt-saddled Chinese polysilicon producer and PV developer GCL-Poly secured a US$ 84.7 million windfall either side of the weekend, thanks to a shares concern as well as a 100 MW solar project sale.
The Suzhou GCL New Energy subsidiary of the business yesterday completed the sale of a 75% stake in a 100 MW solar project in China to a state-controlled entity after GCL-Poly Energy Holdings had placed 1.3 billion new shares on Friday.
The project stake sale to the CDB New Energy business, which is 35.4% regulated by a subsidiary of the Tianjin city government and also 19.67% by a department of the China Development Bank, will generate net earnings of RMB362 million (US$ 51.2 million), based upon a list price of RMB137 million plus almost RMB66 million in dividends along with various other monies owed to the selling company by the traded company.
CDB New Energy has the choice of purchasing the 25% of the project company kept by Suzhou GCL New Energy better down the line. GCL, which has a crippling financial obligation mountain, admitted it had booked a loss on the sale of the 100 MW center.
GLC-Poly Energy Holdings on Friday raised HK$ 260 million (US$ 33.5 million) by providing shares worth 6.15% of the enlarged company. That advancement came less than a month after a previous, near-identical fundraising had lapsed because among the needed problems had not been satisfied.