GCL generates another $85 million with new shares and 100 MW project sale


Debt-saddled Chinese polysilicon manufacturer and PV developer GCL-Poly secured a US$84.7 million windfall either side of the weekend, thanks to a shares issue and a 100 MW solar project sale.

The Suzhou GCL New Energy subsidiary of the company yesterday completed the sale of a 75% stake in a 100 MW solar project in China to a state-controlled entity after GCL-Poly Energy Holdings had placed 1.3 billion new shares on Friday.

The project stake sale to the CDB New Energy business, which is 35.4% controlled by a subsidiary of the Tianjin local government and 19.67% by a division of the China Development Bank, will generate net proceeds of RMB362 million (US$51.2 million), based on a sale price of RMB137 million plus almost RMB66 million in dividends as well as other monies owed to the selling company by the traded business.

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CDB New Energy has the option of purchasing the 25% of the project business retained by Suzhou GCL New Energy further down the line. GCL, which has a crippling debt mountain, admitted it had booked a loss on the sale of the 100 MW facility.

GLC-Poly Energy Holdings on Friday raised HK$260 million (US$33.5 million) by issuing shares worth 6.15% of the enlarged business. That development came less than a month after a previous, near-identical fundraising had lapsed because one of the necessary conditions had not been fulfilled.

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