SolTech’s subsidiary, Advanced SolTech, publishes the prospectus for a 5-year bond yielding 8.75 percent annually

On January 10, 2018, the Board of Advanced SolTech Sweden AB (publ.), ASAB, released a bond offer directed at the general public specifying a 300 MSEK max-ceiling. The bonds are freely transferable and will be traded, assuming application approval, on the Nasdaq First North Bond Market, with first trading day planned to open on March 15, 2018. Advanza Bank AB is the Financial Adviser in connection with this offer.

ASAB’s business operation is focused on financing the construction of solar energy installations in China, which are owned and periodically serviced by the SolTech concern’s jointly owned Chinese company, Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE). The goal set for 2018 is to achieve a total installed solar energy capacity of 88 MW (megawatts) on an investment amounting to approximately 677 MSEK (67.7 MEUR). Current backorders amount to circa 20 MW, with an additional 10 MW under construction.
ASRE is jointly owned, as follows: 51% by SolTech Energy Sweden AB, publ., (SolTech), and 49% by Advanced Solar Power Hangzhou Inc. (ASP). SolTech and ASP have thus far – and in proportion to their ownership percentage – invested 190 MSEK (19 MEUR) of their own capital. The money has been invested in solar energy installations that are today owned by ASRE.
ASAB’s income will consist of interest earned on loans made to ASRE, or its wholly owned, local subsidiaries in China. As security for said loaned out funds, ASAB will hold contractual claim to underlying assets, i.e. virtually everything in the solar energy installations, such as income from customer receivable accounts, which are owned by ASRE in China.

CEO Frederic Telander comments:

  • The SolTech concern’s establishment of installations in China will accelerate as a result of this financing, which, in turn, will also work to generate long term, positive cash flow that much quicker, The amount of the bond offer is adjusted to the current backlog of orders and ongoing installations, in combination with the 2018 goal of achieving an 88 MW installed solar energy capacity. The potential is very great and we have, today, an installed and income generating capacity of about 29 MW, as compared with the circa 2 MW capacity we had when we floated our first bond offer in June 2016.

A complete and formally (FI – Swedish Financial Supervisory Authority) approved prospectus, as well as a summary of the Offer, can be down-loaded from ASAB’s homepage: www.soltechenergy.com and also from the FI and Avanza’s homepages as of February 5, 2018: www.fi.se or www.avanza.se Documentation can also be accessed as of the same time point in printed form at the SolTech concern’s office on Mekanikervägen 12, 146 33 Tullinger.

Offer in brief

Subscription period 5 – 20 February 2018
Options and nominal amounts: 5,000 SEK per bond. Lowest amount to subscribe is four (4) bonds (20,000 SEK). Thereafter, in single (1) bond (5,000 SEK) increments
Interest: 8.75% annually
Interest payment due dates: 15 January and 15 July, with the first payment day – 15 July 2018
Issue Date: 1 March 2018
Reimbursement day: 28 February 2023
Preliminary first trading day: 15 March 2018

Bonds carrying a sum total value of 150 MSEK (15 MEUR) are available to the general public within the parameters of the Offer. The maximum amount allowed in the bond offer, however, is 300 MSEK (30 MEUR). The Company intends to allot Bonds in excess of 150 MSEK, in the event of an over-subscription of the Offer. Should the Offer be subscribed to the maximum 300 MSEK, the cost of the new bond issue would amount to approximately 10 MSEK.

For more information, please contact:
Telander, CEO Advanced SolTech Sweden AB (publ) and SolTech Energy Sweden AB(publ). Tel: 08-441 88 46, email:frederic.telander@soltechenergy.com

The information contained in this press release conforms to that which SolTech Energy Sweden AB (publ.) is required to make public according to the EU’s regulation.596/2014 concerning securities market abuse. Said information is furnished, via the above-cited contact person’s authorization, for publication on 2 February 2018, 14:00 CET.

Advanced SolTech Sweden AB (publ) – ASAB
For the express purpose of financing investment in China, the SolTech concern’s parent company and its partner in China, Advanced Solar Power Hangzhou Inc., have formed ASAB. ASAB’s business operation is centered on financing – by means of making loans to the concern’s subsidiary, ASRE – the creation of solar energy installations in China that are owned and periodically serviced by ASRE or its wholly owned subsidiaries. As security for said loaned out funds, ASAB holds contractual claim to underlying assets (solar energy installations and customer receivable accounts). The company’s Certified Advisor is Mangold Fondkommission AB. Tel: +46 8 5030 1550. For more info, see: www.advancedsoltech.com

SolTech Energy in brief
SolTech Energy develops and sells building-integrated solar energy products for all forms of building structures – commercial, public and residential. The products are a part of a building’s outer shell, as a roof, wall or window, containing semi-transparent solar cells for the production of electricity that simultaneously shuts out solar heat. Soltech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT” with over 14,000 shareholders. Also included in the concern are its jointly owned (51%) subsidiaries ASAB in Sweden and ASRE in China, as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com

Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech owns 51 percent and Advanced Solar Power Hangzhou Inc. (ASP) owns 49 percent. The business model consists of having ASRE finance, install, own, and periodically service solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, along with various forms of subsidies per produced kWh. Focus is now concentrated on building a backlog of orders for 2018 and beyond, with the goal of obtaining an installed capacity of 605 MW (megawatts) by the close of 2021, which in 2022 will be set into full operation, generating current annual sales amounting to approximately 1 billion SEK (100 MEUR).

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