Neo Solar Power raises $120 million via bond offering

Share

The successful offering comes at a critical juncture for the Taipei-listed PV cell and module supplier, which wants to continue to build its manufacturing capacity and expand sales.

“We have successfully met our fund-raising objective, improved the visibility of our company to global investors and enhanced our corporate profile,” it said in an online statement.

The company has estimated the gross proceeds of the placement at roughly NT$3,804 million ($120 million). It will use the funds to repay outstanding bank loans and its second set of ECBs.

It priced its most recent offering of bonds at NT$18 per share, with a 10.4% premium based on a closing share price of NT$16.3 per share on October 18.

The bonds will be listed on the Singapore Stock Exchange by the end of this month, with Daiwa Capital Markets Hong Kong and the Hong Kong branch of ING Bank coordinating the offering.

They will reach maturity on October 27, 2019.

Hsinchu-based NSP reported revenues of NT$1,038 million for the month of September. That marked a sharp reversal from just NT$632 million in August, when the company was struggling to cope with weak demand in the wake of downward revisions to feed-in tariffs (FITs) in China, a key market.

However, NSP’s total revenues had only reached NT$13,389 million by the end of September, down 45.2% from the same period a year earlier, underscoring the company’s disappointing results in the first half of 2016.

Although it recently finished upgrading its factory in Malaysia, the company’s outlook remains unclear.

Among other issues, it is still struggling to cope with a drop in the average selling price of its solar panels, while remaining beholden to Chinese manufacturers for demand.

“There’ve been noises about solar industry outlook recently and China government’s new solar energy policy,” NSP said, arguing that despite this, investors remain confident in the company’s future performance.