BAODING, China, April 16 /PRNewswire-Asia/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or "the Company"), one of the world’s leading vertically integrated photovoltaic ("PV") product manufacturers, today announced the US$50 million draw down under the previously announced three-year loan facility provided by a fund managed by Asia Debt Management Hong Kong Limited ("ADM Capital") and the renewal of credit lines up to an aggregate amount of RMB 1 billion with the Export-Import Bank of China ("China Eximbank"), a government policy bank solely owned by China’s central government.
"We are very pleased to have made further progress in securing additional financing for our operations, which both strengthens our capital position and enhances our ability to expand our business in this challenging economic environment," commented Mr. Zongwei Li, Director and Chief Financial Officer of Yingli Green Energy. "This initial cooperation with ADM Capital, in conjunction with the extension of our long-term cooperation with China Eximbank, is not only evidence of the market’s confidence in Yingli’s value proposition and business development potential, but also a reflection of the Company’s successful efforts to ensure our strong capital position."
ADM Capital Loan Facility
Yingli Energy (China) Company Limited ("Yingli China"), a wholly owned subsidiary of the Company located in Baoding, China, has successfully drawn down the principal amount of US$50 million on the previously announced three-year loan facility provided by ADM Capital. The loan will provide the Company with additional financing for its production capacity expansion and general corporate purposes.
In connection with the draw down of the loan, the Company granted ADM Capital 4,125,000 warrants under a Warrant Agreement between the Company and Deutsche Bank Luxembourg S.A., as warrant registrar, at an initial strike price of US$5.64. The warrants are exercisable with respect to approximately one-fifth of the warrants every six months starting from April 7, 2009, the draw down date of the loan, to April 7, 2012. On April 30, 2012, the warrantholders’ rights to exercise the warrants will terminate and the Company will be obligated to purchase all unexercised warrants at a price of US$7.00 per warrant. The Company may at its discretion settle the warrants in cash, shares or a combination of cash and shares.
China Eximbank RMB 1 Billion Credit Line
Yingli Green Energy also announced that one of its operating subsidiaries, Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli"), has entered into an export seller’s credit facility and an import credit facility with China Eximbank. Under the credit facilities, China Eximbank has agreed to provide Tianwei Yingli long-term credit lines of up to an aggregate amount of RMB 1 billion for a term of 18 months, RMB 700 million of which will accrue interest at a rate below the benchmark interest rate set by the People’s Bank of China. The new credit lines will replace all previous short-term credit lines in an aggregate amount of RMB 1 billion provided by China Eximbank which the Company announced in October 2008.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited is one of the world’s leading vertically integrated PV product manufacturers. Through Baoding Tianwei Yingli New Energy Resources Co., Ltd., an operating subsidiary of the Company, Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter of 2009. The Company, through Fine Silicon Co., Ltd., its wholly owned subsidiary, also plans to begin production of solar-grade polysilicon in the second half of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. For more information, please visit http://www.yinglisolar.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy’s control, which may cause Yingli Green Energy’s actual results, performance or achievements to differ materially from those in the forward- looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy’s filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For further information, please contact:
In China:
Qing Miao
Director, Investor Relations
Yingli Green Energy Holding Company Limited
Tel: +86-312-3100-502
Email: ir@yinglisolar.com
Courtney Shike
Brunswick Group LLC
Tel: +86-10-6566-2256
Email: yingli@brunswickgroup.com
In the United States:
Katie Cralle
Brunswick Group LLC
Tel: +1-212-333-3810
Email: kcralle@brunswickgroup.com
