Suntech: Convertible Loan Facility with IFC
Suntech Power Holdings Co., Ltd., the world's largest crystalline silicon photovoltaic (PV) module manufacturer, announced that it has satisfied the conditions precedent to draw down the convertible loan facility with IFC, a member of the World Bank Group, and has drawn down the full $50 million amount of the facility. Under the terms of the loan facility, IFC has the option to convert the loan to Suntech's American Depository Shares (ADS) at any time prior to maturity at an initial conversion price of $18.00 per ADS. Proceeds from the facility will be used to support Suntech's transition to the high efficiency Pluto technology and debt financing requirements.
"We are pleased to cement our partnership with IFC to advance the adoption of solar energy as an instrument for sustainable global change," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We view this loan agreement as a strong endorsement of Suntech's business model and leadership role in furthering the world's transition to renewable energy sources."
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, please visit http://www.ifc.org .
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of crystalline silicon solar modules. Suntech designs, develops, manufactures, and markets premium quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods. Suntech also offers one of the broadest ranges of building-integrated solar products.
Suntech designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiary Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with Renewable Ventures, a Fotowatio company. With regional headquarters in China, Switzerland and San Francisco and sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visit http://www.suntech-power.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements, and includes the use of proceeds of the IFC loan and the ability of Suntech to set the benchmark for quality in the solar industry. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
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Investor Relations Director
Suntech Power Holdings Co., Ltd.