GCL to sell 7 Chinese solar plants for USD 156.5m
- GCL New Energy has inked an agreement for selling seven China-based photovoltaic projects to CHNG. The total capacity of the operational facilities is about 294 megawatts.
Major Chinese utility Huaneng Group is purchasing seven operational PV arrays from GCL New Energy, which is GCL-Poly Energy Holdings’ unit.
The combined capacity of the installed facilities is estimated at around 294 megawatts. The debt/equity swap is worth about USD 156.53mn. The transaction is aimed at reducing the owner’s debt burdens. The parties are currently discussing further deals regarding the prospective purchase of more photovoltaic stations.
As of the last day of September, the net asset value of 6 GCL New Energy Holdings’ units owning seven PV arrays was estimated at around USD134mn.
Not long ago, China National Nuclear Power has purchased eleven China-based photovoltaic stations from SFCE for USD 91.2mn. But the seller claims it will lose about USD 100.2mn as a result of the deal.
For over a year and a half, considerable changes in Chinese solar policies as well as substantial delays of feed-in payments have been financially squeezing local solar developers. As a result, lots of solar facilities are being sold at a reduced price.