Yingli Green Energy Holding Co. Ltd. says that one of its wholly owned subsidiaries has entered into a credit agreement for a three-year loan facility with a fund managed by Asia Debt Management Hong Kong Ltd. (ADM Capital) to secure additional financing for its business expansion.
Pursuant to a credit agreement entered into between Yingli Energy (China) Co. Ltd. as the borrower, and ADM Capital as the lender, ADM Capital has agreed to provide a three-year loan facility of up to $80 million to Yingli China for its production capacity expansion and general corporate use.
The loan will accrue interest of 12% per annum (payable semiannually) and is expected to be available for draw-down in one lump sum at any time up to 85 days from the date of the agreement (or such later date as agreed by ADM Capital), subject to the obtaining of certain governmental approvals and satisfaction of other customary closing conditions. Under the terms of the agreement, the lenders may also require Yingli China to prepay the loan in part or in full if Yingli Green Energy fails to meet certain agreed consolidated operating and financial targets.
SOURCE: Yingli Green Energy Holding Company Ltd.