GCL nets $46 million for its solar project subsidiary

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Chinese polysilicon producer GCL Goldpoly yesterday issued a US$50 million convertible bond to finance its CSPG (China Solar Power Group Ltd) project acquisition subsidiary.

The 5% bond, due to mature in October 2016, represents some 12.44% of the issued share capital in GCL – 11.07% once converted – and, according to a statement issued by the company to the Hong Kong Stock Exchange yesterday, is expected to net the manufacturer around HK$358 million (US$46.2 million).

The share sale further bolsters Hung Chao Hong’s interest in the poly maker, chiefly through the Jet Mile Limited company he two-thirds owns.

Jet Mile stake is rising

Once the current and previously issued bonds in GCL Poly are converted into shares, Jet Mile’s holding would rise from 4.78% to 29.11% and represent a total 32.79% interest in the company for Hong and ‘parties acting in concert with him.’

Shares in GCL Goldpoly resumed trading for today’s morning session after being suspended since Friday morning, pending the bond announcement.

The bond issue represents a further step in GCL’s move downstream and follows the announcement on Friday of a delay in the planned acquisition of a stake in Chinese solar developer Fengxian Huize.

GCL also announced the departure of its chief financial officer on Friday.