news - FMO invests in Singyes Solar Technologies

FMO has invested in China Singyes Solar Technologies Holdings Limited, a professional renewable energy solution provider and building contractor (“Singyes”). Singyes has received a US$90 million A/B Loan Facility* from FMO, the Dutch development bank, and a consortium comprising Hong Kong, Taiwanese and Korean banks. This is the first syndicated loan Singyes has raised since its listing in Hong Kong and the second financing made by FMO in the China solar energy sector.  

The US$90 million loan is structured as an A/B-loan facility, which comprises two tranches, a US$25-million tranche (“Tranche A”) provided by FMO with a maturity term of five years and interest rate** of LIBOR plus 6% per annum. The second tranche of US$65 million (“Tranche B”), with a maturity term of three years and interest rate** of LIBOR plus 4.25% per annum, is jointly provided by a bank consortium formed by Hong Kong, Taiwanese and Korean banks. FMO & The Royal Bank of Scotland plc (“RBS”) are the joint Mandated Lead Arrangers and Bookrunners on the A/B loan transaction.

The loan will be primarily used for developing Singyes’ projects in the China solar energy sector as well as capital expenditure and general working capital of the Group. The applied innovative technology provides up to 40% energy saving for buildings and contributes positively to the reduction of CO2 emissions. The Company’s product range also includes: solar cells (very small quantity), PV modules, solar thermal collectors, air source heat pumps, selective absorber coatings, ITO film, LC film/glass, curtain wall materials, and solar PV application products.

Mr. Liu Hongwei, Chairman of China Singyes, said, “It is particularly encouraging to see this favorable response in view of the current volatile environment in the capital market, especially for the solar and renewable energy sector which has suffered from protracted credit crunch for quite some time. The long-term loan facility we have received outside the domestic China market will help optimize our loan structure and lower our overall borrowing cost. We are pleased to receive the strong support from international banks, including FMO and RBS, and other leading banks from Hong Kong, Taiwan and Korea which represent robust market confidence in the Group’s unique business proposition and long term development prospect.” 

“FMO is proud to support this important investment in renewable energy in China. Singyes has built an impressive portfolio of productive renewable assets which has changed the energy matrix into a cleaner and more sustainable one. With our co-lenders, we are pleased to work with investors who are committed to renewable energy”, said Nanno Kleiterp, CEO of FMO.

“RBS is honoured to have the opportunity to work with FMO on this inaugural syndicated loan transaction of China Singyes Solar Technologies Holdings Limited, as the Sole Mandated Lead Arranger and Bookrunner on B-loan. We are pleased with the very successful outcome that has been achieved through a smooth and efficient execution process together as a result of excellent partnership with Singyes, FMO and respective participating banks,” said Alex Chu, Head of International Banking, North Asia of RBS.

“The Chinese government has rolled out different policies and subsidy programs, including the recent announcement of lifting the overall photovoltaic installed capacity target from 21 gigawatts (GW) to over 35 GW by 2015, to support the development of green buildings and renewable energy sector. With our capital base now strengthened by the long-term loan facility, we are well positioned to capture more exciting market opportunities and would endeavor to become a leading green energy enterprise in China and globally,” Mr. Liu concluded.

* with greenshoe options

** which may be adjusted for certain market disruption events in accordance with the terms of the Term Facility Agreement

About China Singyes Solar Technologies Holdings Limited

China Singyes Solar Technologies Holdings Limited is a professional renewable energy solution provider. It focuses on renewable energy systems integration with the core of building energy saving, and dedicates to economical solutions for green buildings. Singyes Solar specializes in system design, processing, assembling and operation of curtain walls, building integrated photovoltaic/solar thermal (BIPV/BIST) systems, etc. It also develops systems and auxiliary products such as photovoltaic modules, solar collectors and air source heat pumps.

About FMO

FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl

About The Royal Bank of Scotland Group (RBS)

The RBS Group is a large international banking and financial services company. Headquartered in Edinburgh, the Group operates in the United Kingdom, Europe, the Middle East, the Americas and Asia, serving over 30 million note holders worldwide. The Group provides a wide range of products and services to personal, commercial and large corporate and institutional note holders through its two principal subsidiaries, The Royal Bank of Scotland and NatWest, as well as through a number of other well-known brands including Citizens, Charter One, Ulster Bank and Coutts.