Chinese manufacturer prepares to raise $434m through bonds

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Chinese solar manufacturer and PV project developer Xinte Energy has arranged a second EGM of the year next month, to consider proposals to raise around $434 million.

The polysilicon, wafer, module and inverter maker – a subsidiary of Chinese power company TBEA – wants to issue RMB2 billion ($289 million) worth of corporate bonds with a maximum five-year term, plus a further RMB1 billion of renewable bonds which the issuer can extend every three or five years, depending on the bond.

Shareholders will be asked to vote on the board's fundraising proposals at an EGM in Changji, Xinjiang on December 12.

The board states the proceeds of any bond issue will be used for investment in fixed assets, working capital and debt repayment.

Urumqi-based Xinte is making the move as its manufacturing peers scramble to increase solar production capacities despite market fears related to a reduction in PV subsidies in China this year, and perhaps inspired by speculation Beijing is preparing to ramp up its national solar energy target.

Stock markets have also been buoyed by speculation Chinese President Xi Jinping is nearing an agreement with U.S. counterpart Donald Trump that could remove tit-for-tat trade tariffs imposed on each other's goods, including a 25% rate applied to Chinese solar goods imported by the U.S.

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