China’s GCL-Poly subsidiary issues 1.15 billion yuan in notes for onshore debts
Debt-laden GCL-Poly Energy Holdings, the world’s largest maker of solar panel raw material polysilicon and key component solar wafer, said on Tuesday a wholly-owned subsidiary in Suzhou has issued onshore notes worth 1.15 billion yuan to repay existing bank borrowings and replenish working capital.
The company in May got regulatory approval for the issuance of a quota of 1.3 billion yuan in short-term notes and 2.5 billion yuan in medium-term notes in mainland China within two years.
The first tranche, of 650 million yuan in one-year notes paying 5.5 per cent per annum and of 500 million yuan in three-year notes paying 7 per cent, was issued on Monday, the Jiangsu-based company said in a filing with the Hong Kong Stock Exchange.
The Suzhou subsidiary has majority of the group’s wafer production plants in China and act as a financing platform for the solar material business sector.
GCL-Poly Energy Holdings said in June that it expected polysilicon prices to recover in the second half of this year as demand would pick up and a ban on “processed” polysilicon imports would come into effect.
The company posted an 11.7 per cent decline in the average selling price of its polysilicon in the first quarter to US$19.14 per kilogram, while that of solar wafers fell 13 per cent to 20 US cents per watt.
