On April 15, 2018, ASAB ’s (Advanced SolTech Sweden AB (publ.) Board of Governors decided to issue a bond – providing approval of its prospectus – directed toward the general public in the amount of 150 MSEK, with an over-allocation right amounting to a further, max-sum of 150 MSEK. The bonds are freely transferable and will be listed for trading – presuming application approval – on First North Sustainable Retail Bonds at Nasdaq Stockholm. The bond’s first trading day is planned to take place on July 16, 2018. Avanza Bank AB is the Financial Advisor in connection with this offer and G&W Fondkommission (Security brokers) is the Selling Agent.
ASAB’s business operation consists of financing the construction of solar energy installations in China, which are installed, owned and periodically serviced by the SolTech concern’s jointly owned company, Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE). The goal set for 2018 is to install 88 megawatts (MW) of solar energy capacity equivalent to an investment cost of approximately 677 MSEK (67.7 MEUR). The sum-total capacity reflected in today’s stock of resting back orders amounts to circa 25 MW, with an additional solid 12 MW under construction. It is toward the construction of these installations that the capital is required. ASRE is jointly owned; 51 percent by SolTech Energy Sweden AB (SolTech), and 49 percent by Advanced Solar Power Hangzhou Inc. (ASP). SolTech and ASP have to date, and in direct proportion to their ownership share, invested 190 MSEK (19 MEUR) of their own capital in ASRE. Total investment in the company amounts to approximately 411 MSEK (41.1 MEUR). The money has been invested in solar energy installations that are today owned by ASRE. ASAB’s earnings will consist of interest income due on loans made to ASRE or its wholly owned local subsidiaries in China. As security for the funds it thus loans out, ASAB will obtain legally enforceable collateral claim on underlying assets, which is to say; most of the solar energy installations, as well as customer receivables, owned by ARSE in China.
CEO Frederic Telander comments:
– Construction of the SolTech concern’s installations in China will accelerate as a result of this financing, which also means the generation of long-term positive cash flow will be realized that much faster. The bond issue’s size is adjusted to the stock of resting back orders and ongoing installations, in combination with the goal set for 2018 of 88 MW of installed energy capacity. The potential is very large, and today we have an installed and income generating 32 MW solar energy capacity as compared to the circa 2MW we had at the time we offered our first bond in June 2016.
The complete and Swedish Financial Supervisory Authority (Finansinspektionen) approved prospectus, along with a summary of the Offer, will be accessible for downloading from ASAB’s homepage: www.advancedsoltech.com as well as from the respective homepages of the Swedish Financial Supervisory Authority, Avanza www.fi.se www.avanza.se and GW www.gwkapital.se from May 29, 2018 and onward. Beginning at the same time point, this documentation will also be accessible in printed form at the SolTech concern’s office at Mekanikervägen 12, 146 33 Tullinge.
The Offer in Summary:
Subscription period: 29 May – 18 June 2018
Denomination and nominal sum: 5 000 SEK per bond. Lowest amount to subscribe is four (4) bonds (20 000 SEK). Thereafter, in one (1) bond increments
Interest: 8,75 % annually
Interest payout date: 15 January and 15 July, with first payout on 15 January 2019.
Publication date: 10 July 2018
Reimbursement day: 9 July 2023
Preliminary first trading day: 16 July 2018
Bonds amounting to a cumulative sum of 150 MSEK are being offered within the framework of the Offer. The bond loan’s maximum sum, however, may amount to 300 MSEK. The Company intends to allocate Bonds over the “Offer sum” of 150 MSEK in the event the Offer is oversubscribed. Should the Offer be subscribed for 300 MSEK, new issue costs are estimated to amount to approximately 10 MSEK.
For more information, please contact:
Frederic Telander, CEO Advanced SolTech Sweden AB (publ.) and SolTech Energy Sweden AB (publ.). Tel: 08-441 88 46, email: firstname.lastname@example.org
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 23 May 2018, 07:00 CET.
Advanced SolTech Sweden AB (publ.) – ASAB
With the express aim of periodically financing current investment in China, SolTech Energy Sweden AB(publ.) and its partner in China, Advanced Solar Power Hangzhou Inc., have established ASAB. ASAB’s business operation consists of providing loans to the parent concern in order to finance solar energy installations in China, which are owned and periodically maintained by ASRE, or its wholly-owned local subsidiaries. Security for the loaned out funds rests in the underlying assets (solar energy installations and customer accounts receivable). The company’s Certified Advisor is Mangold Fondkommission AB. For more info, see: www.advancedsoltech.com
SolTech Energy Sweden AB (publ.) – Parent company of the SolTech Concern
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. 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).