{"id":4508,"date":"2018-09-20T12:00:00","date_gmt":"2018-09-20T10:00:00","guid":{"rendered":"https:\/\/new-stage.soltechenergy.com\/mfn_news\/soltechs-subsidiary-asab-releases-the-prospectus-for-a-5-year-green-bond-yielding-8-25-percent-annual-interest\/"},"modified":"2024-05-08T12:44:21","modified_gmt":"2024-05-08T10:44:21","slug":"soltechs-subsidiary-asab-releases-the-prospectus-for-a-5-year-green-bond-yielding-8-25-percent-annual-interest","status":"publish","type":"mfn_news","link":"https:\/\/soltechenergy.com\/en\/mfn_news\/soltechs-subsidiary-asab-releases-the-prospectus-for-a-5-year-green-bond-yielding-8-25-percent-annual-interest\/","title":{"rendered":"SolTech\u2019s subsidiary, ASAB, releases the prospectus for a 5-year green bond, yielding 8.25 percent annual interest"},"content":{"rendered":"
On August 15, 2018, the Board of Directors of Advanced SolTech Sweden AB (publ.) (ASAB) decided to offer a new bond issue directed at the general public in the amount of 150 MSEK (ca. 15 MEUR), with an over-allocation\/subscription right up to a maximum amount of a further 150 MSEK. The bonds are freely transferable and will be listed for trading on First North Sustainable Retail Bonds at Nasdaq Stockholm, with first trading day planned to take place on November 12, 2018. Avanza Bank AB is the Financial Advisor.<\/strong><\/div>\n

ASAB\u2019s business operation is centered on financing the SolTech-concern\u2019s construction of solar energy units in China. These units are installed, owned and periodically serviced by the jointly owned Chinese subsidiary Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE). ASAB\u2019s income consists of interest earnings paid in on the loans provided to ASRE, or its wholly-owned subsidiaries in China. As security for these loaned out funds, ASAB will have contracted legal claim to underlying assets, which is to say; the solar energy installations, as well as customer receivable accounts, owned by ASRE in China.
\nSolTech and its Chinese business partner, Advanced Solar Power Hangzhou Inc. (ASP), have thus far, and in proportion to their ownership share \u2013 51 and 49 percent, respectively \u2013 invested 190 MSEK of their own capital in ASRE. In August 2018, ASRE\u2019s solar energy installations had a cumulative total capacity equivalent to 52.21 MW coupled to the central electric network. An additional 2.73 MW are under construction. The last installation that ASRE invested in is mounted on the roof of one China\u2019s largest producers of wine and alcohol. The installation covers a surface measuring circa 127,000 sq. meters, or 18 football fields, with an installed effect of 12.7 MW (127,000,000 watts).
\nThe business operation in China is growing. The goal for 2018 is to install 88 megawatts (MW) of solar energy capacity, which corresponds to an investment of approximately 616 MSEK. ASRE has a backlog amounting to circa 24 MW, and a circa 95 MW pipeline project that is periodically being processed. It is to address this backlog and to convert this pipeline to a concrete project that the investment capital is needed.<\/span><\/span><\/p>\n

CEO Stefan \u00d6lander comments:<\/span><\/span><\/strong>
\n\u2013 The SolTech concern\u2019s new-installation pace is going to accelerate as a result of this financing. And as you\u2019re aware, the more solar energy units we get installed and coupled \u2013 the faster we generate long-term, positive cash flow. The potential is immense. As it stands today, SolTech\u2019s installed and income-producing solar energy installations are generating approximately 50 MW more electricity than the just-over 2 MW of installed capacity reported two years ago when ASAB issued its first bond. Investing in ASAB\u2019s bonds, in addition to securing a handsome yield, is investing money where it makes a concrete and highly apparent environmental good: We are helping China replace coal energy with solar energy.<\/span><\/span><\/p>\n

SUMMARY OF THE OFFER\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/strong><\/p>\n

Subscription period: September 24 \u2013 October 15, 2018
\nDenomination and nominal amount: 5 000 SEK per bond. The minimum amount to subscribe is four (4) bonds\u00a0 (20 000 SEK): Thereafter, in increments of one (1) bond.
\nInterest: 8.25 % annually
\nInterest due dates: January 15 and July 15, with first payout falling due on January 15, 2019.
\nBond release date: November 9, 2018
\nBond repayment date: November 8, 2023
\nPreliminary first trading day: November 12, 2018<\/span><\/span><\/p>\n

Bonds amounting to a sum total value of 150 MSEK are offered within the framework of the offer. However, the bond issue\u2019s maximum value can amount to 300 MSEK (ca. 30 MEUR): The Company intends to allocate Bonds over the amount of 150 MSEK in the event the Offer is oversubscribed. Should the Offer be subscribed to the maximum amount of 300 MSEK, the new issue costs would then amount to approximately 10 MSEK.<\/span><\/span><\/p>\n

The complete prospectus, officially approved by the Swedish Financial Supervisory Authority (Finansinspectionen, FI<\/em>), as well as a summary of the Offer may be downloaded, as of September 24, 2018, from ASAB\u2019s homepage:\u00a0www.advancedsoltech.com<\/a>. In addition, this information can also be accessed for downloading on the homepages of Avanza:\u00a0www.avanza.se<\/a>. and\u00a0Finansinspectionen<\/em>:\u00a0www.fi.se. Printed copies of this documentation are also available at the SolTech concern\u2019s office located at Upplagsv\u00e4gen 1 in Stockholm (\u00c5rstaberg).<\/span><\/span><\/p>\n

For more information, please contact:<\/span><\/span><\/strong>
\nFrederic Telander, CEO Advanced SolTech Sweden AB (publ.); Tel: 08-441 88 46, email: \u00a0frederic.telander@soltechenergy.com<\/a>, or Stefan \u00d6lander, CEO SolTech Energy Sweden AB (publ.); Tel: 070\u00a0739 80 00, email:\u00a0stefan.olander@soltechenergy.com<\/a><\/span><\/span><\/p>\n

The information contained in this press release conforms to that which SolTech Energy Sweden AB (publ.) is required to make public according to the EU\u2019s regulation 596\/2014 concerning securities market abuse. Said information is furnished, via the above-cited contact person, Stefan \u00d6lander\u2019s authorization for publication on 20 September 2018, 14:00 CET.<\/span><\/span><\/p>\n

Advanced SolTech Sweden AB (publ) \u2013 ASAB<\/span><\/span><\/em><\/strong>
\nFor the express purpose of financing investment in China, the SolTech concern\u2019s parent company and its partner in China, Advanced Solar Power Hangzhou Inc., have formed ASAB. ASAB\u2019s business operation is centered on financing, via making loans to the concern\u2019s companies, solar energy installations in China that are owned and periodically serviced by ASRE or its wholly owned local subsidiaries. As security for said loaned out funds, ASAB holds contractual claim to underlying assets (solar energy installations and customer receivable accounts). The company\u2019s Certified Advisor is Mangold Fondkommission AB, Tel: +46 8 5030 1550. For more info, see:\u00a0www.advancedsoltech.com<\/a>.<\/span><\/span><\/em><\/p>\n

SolTech Energy Sweden AB (publ) \u2013 parent company of the SolTech-concern<\/span><\/span><\/em><\/strong>
\nSolTech Energy develops and sells building-integrated solar energy products for all forms of building structures \u2013 commercial, public and residential. The products are a part of a building\u2019s outer shell, as a roof or wall, for the production of electricity. Soltech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol \u201cSOLT\u201d and has over 15,000 shareholders. Also included in the concern are its jointly owned (51%) subsidiaries ASAB in Sweden and ASRE in China. The company\u2019s Certified Advisor is G&W Fondkommission (securities broker). For more information see:\u00a0<\/span><\/span><\/em>www.soltechenergy.com<\/span><\/span><\/a><\/em>.<\/span><\/span><\/em><\/p>\n

I<\/span><\/span><\/em>nvestment in China<\/span><\/span><\/em><\/strong>
\nSolTech\u2019s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy\u00a0<\/span><\/span><\/em>(Hangzhou) Co. Ltd (ASRE), where<\/span><\/span><\/em>\u00a0SolTech owns 51 percent and Advanced Solar Power Hangzhou Inc. (ASP) owns 49 percent. The business model consists of having ASRE finance, install, own, and periodically service solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and\/or thermal heat the relevant unit produces. ASRE\u2019s current income comes from the sale of electricity to customers, along with various forms of subsidies per produced kWh. Focus is now concentrated on building a backlog of orders for 2018-19 and beyond, with the goal of obtaining an installed capacity of 605 MW (megawatts) by the close of 2021, which in 2022 will be set into full operation, generating current annual sales<\/span><\/span><\/em>\u00a0amounting to approximately 1 billion SEK (ca. 100 MEUR).<\/span><\/span><\/em><\/p>\n

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