GCL-Poly completes shares placement to help pay down debts

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Polysilicon manufacturer GCL-Poly has completed a shares placing that amounted to 8.24% of company stock and is expected to have raised HK$860 million (US$87 million) to pay down debt.

The manufacturer informed the Hong Kong exchange yesterday it had issued 1,511,000,000 new shares at HK$0.45 per share.

Upon announcing its latest fundraising measure, GCL-Poly said the net proceeds would be used to pay down debt.

GCL is one of the Chinese solar manufacturers that is amassing significant borrowings to fund a rapid expansion of its annual production capacity for polysilicon and wafers.

There were signs of shareholder unrest with the company’s expand-at-all-costs strategy at the annual general meeting a week ago. At the gathering, more than 9% of stock holders voted against a standard issue mandate for the board to place shares.

The holders of almost 16% of the company stock voted against the reappointment of Zhu Yufeng as an executive director of the business.