GCL Poly subsidiary sweats solar assets for $89m cash injection

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The solar project development business of polysilicon giant GCL Poly has raised RMB600 million ($89 million) through a sale and leaseback agreement relating to a 140 MW plant in China’s Shaanxi province.

The poly maker’s GCL New Energy development business announced yesterday on the Hong Kong Stock Exchange it had sold its project in Shenmu city to Cinda Financial Leasing.

The move is a short-term fundraising measure with GCL New Energy agreeing to lease back the project from Cinda for nine years in return for total payments of almost RMB752 million over that period – plus a RMB59.4 million leasing fee.

In its announcement to the Hong  Kong exchange, GCL New Energy (GNE) stated the move was necessary as “the GNE group requires capital from time to time to construct its solar power plant projects”. The project development business may also have to sweat its assets after a spending spree by its parent company on expanding polysilicon manufacturing capacity.

Elsewhere on the exchange, utility China Energy Engineering announced a 500 MW solar plan for the Shanxi province of China which will involve two 250 MW facilities, in the counties of Licheng and Pingshun.

The energy company also revealed work has started on a 268.6 MWh power plant and battery storage facility in Jiangbei, Nanjing province, which it described as “currently the grid-side electrochemical energy storage power station with the largest capacity and the highest power in China”.

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