{"id":4618,"date":"2017-10-20T05:00:00","date_gmt":"2017-10-20T05:00:00","guid":{"rendered":"https:\/\/new-stage.soltechenergy.com\/mfn_news\/new-strategy-for-financing-solar-energy-in-china\/"},"modified":"2024-05-08T13:00:52","modified_gmt":"2024-05-08T11:00:52","slug":"new-strategy-for-financing-solar-energy-in-china","status":"publish","type":"mfn_news","link":"https:\/\/soltechenergy.com\/en\/mfn_news\/new-strategy-for-financing-solar-energy-in-china\/","title":{"rendered":"New Strategy for financing solar energy in China"},"content":{"rendered":"
Sol Tech\u00a0Energy\u2019s\u00a0Swedish subsidiary, Advanced SolTech Sweden AB (publ.)(ASAB), with responsibility for financing the Group\u2019s investments in China, signed a contract with Danske Bank in January 2017 for the purpose of exploring the possibility of issuing \u201dgreen bonds\u201d to the bank\u2019s network of institutional investors.<\/strong><\/div>\n

Over the course of the year, ASAB and Danske Bank established a structure for a green bond issue. However, after a careful evaluation of the criteria that Danske Bank\u2019s network of investors wished to see fulfilled, the partners have chosen to terminate any further pursuit of this cooperative effort.<\/span><\/span><\/p>\n

CEO Frederic Telander comments:<\/span><\/span><\/strong><\/p>\n

\u201dAs a rule, investors in the institutional market generally take 10% of the total volume and, in this case, they wanted the bond issue to be significantly larger than ASAB had planned. With a greater volume, we run the risk of not being able to convert the money into completed and income producing solar energy installations fast enough, with the consequent follow of increased financing costs.. The institutional investors\u2019 criteria also contained restrictions that made other means of financing the concern\u2019s operation in China \u2013 as for example, a public bond issue, bank loans, leasing, etc. \u2013 for all practical purposes, impossible. When we weighed the requirements in total, we realized they were neither advantageous to us nor fair to ASAB\u2019s current bondholders. Given this situation, we chose not to further pursue an institutional bond issue.\u201d<\/span><\/span><\/p>\n

A new strategy \u2013 making use of our own capital, bonds and bank loans, as well as the introduction of ASAB on the Stock Exchange<\/span><\/span><\/strong>.\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 \u00a0SolTech Energy Sweden AB (publ.) and Advanced Solar Power Hangzhou Inc. (ASP) have decided that the following strategy is to be implemented to finance the expansion of solar energy in China through our jointly owned subsidiary ASRE.<\/span><\/span><\/p>\n