Oversubscribed second tranche will fund working capital, repay bank loans
By Susanna Moon
Chicago, May 12 - Yingli Green Energy Holding Co. Ltd. said that on May 12 its subsidiary Baoding Tianwei Yingli New Energy Resources Co., Ltd. completed the second tranche of a planned offering of renminbi-denominated five-year unsecured medium-term notes. The RMB 1.4 billion second tranche carries a fixed interest rate of 6.15%.
About 70% of the proceeds will be used to enhance Tianwei Yingli's working capital, and the remaining 30% will be used to repay bank loans with higher interest rates, according to a company press release.
Bank of Communications acted as the lead underwriter and bookrunner for the second tranche with standby commitment.
In October 2010, Tianwei Yingli registered to issue up to 2.4 billion RMB-denominated unsecured five-year medium-term notes with the PRC National Association of Financial Market Institutional Investors. The company completed the issuance of the first tranche of RMB 1.0 billion unsecured medium-term notes on Oct. 13, 2010.
"The issuance recorded an oversubscription of 210%, which showed investors' confidence in our sustainable operations," Bryan Li, director and chief financial officer of Yingli Green Energy, said in the release.
"The interest rate of 6.15% for the second tranche issue is highly commendable, compared to the current benchmark interest rate of 6.65% for five-year bank borrowings. This successful issuance will further enhance our working capital and optimize our overall capital structure."
Yingli is a solar energy company based in Baoding, China.
| Issuer: | Baoding Tianwei Yingli New Energy Resources Co., Ltd.
|
| Issue: | Medium-term notes
|
| Amount: | RMB 2.4 billion
|
| Maturity: | Five years
|
| Coupon: | 6.15% (for second tranche)
|
| Price: | Par
|
| Yield: | 6.15%
|
| Underwriters: | Bank of Communications (lead underwriter and bookrunner)
|
| Warrants: | No
|
| Settlement dates: | May 12 for RMB 1.4 billion; October 2010 for RMB 1.0 billion
|
| Stock symbol: | NYSE: YGE
|
| Stock price: | $10.87 at close on May 11
|
| Market capitalization: | $1.63 billion
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