SolTech’s subsidiary, ASAB’s new bond issue provided 67 MSEK ($8.2 M US)* – Capital needs in China for 2016 are, in principle, covered.

 

SolTech’s jointly owned Swedish subsidiary, Advanced SolTech Sweden AB (publ.), ASAB, published a prospectus on 19 May 2016 detailing a bond offer (max: 300 MSEK) directed at the general public. More specifically, the offered bonds carried an interest rate of 6.5 % to be paid annually over a 3-year term ending on 14 June 2019. The subscription period spanned two weeks, from 23 May through 7 June 2016. The outcome came to 67 MSEK ($8.2 M US)* furnished by circa 1,250 subscribers and the bonds will be, assuming application approval, listed on the Nasdaq First North Bond Market, with the first trading day envisioned as taking place on 1 July 2016.

ASAB’s mission in the SolTEch concern is to finance the business operation in China, which is carried out by the jointly-owned subsidiary Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE), whose minority ownership (49%), precisely as with ASAB, is held by SolTech’s partner in China, Advanced Solar Power Hangzhou Inc. (ASP).  The set goal in China is to achieve an installed solar energy capacity of 25 MW at a corresponding total investment of approximately 240 MSEK ($29.3 M US). This investment sum, as compared to the 265 MSEK ($32.3 M US) total investment requirement previously cited in the prospectus, reflects a revision calculated on a lower construction cost per installed watt.

The proceeds of ASAB’s new bond issue now provide investment capital mounting to approximately 67 MSEK, less usual new issue costs: The remaining capital required to meet the goal for 2016 will be provided, partly in the form of loans from ASP’s bank in China (moreover: one of the world’s largest banks), Industrial and Commercial Bank of China, which is far along in advanced discussions with ASRE concerning a contracted line of credit up to approximately !00 MSEK ($12.2 M US) – and in part, the capital required will be provided by ASRE’s owners in the amount of 75 MSEK ($9.1 M US), with SolTech and ASP contributing on the basis of their respective ownership share.

* Based on an exchange rate of 8.2 SEK/US dollar.

CEO Frederic Telander comments:

”The most vital message is that we have, in principle, covered the financing of 2016’s goal of 25 MW of installed solar energy capacity in China. The business operation, with a predictable and long-term, strong cash flow, is extremely suited for loan financing. The composition of financing sources remains, in addition to the loan/credit options of bank financing, as well as further injections of our own capital. Installed and up-coupled installations are already generating an approximate 2.5 MW positive cash flow – a figure we will more closely determine and report in the upcoming publication of the concern’s half-year result. On top of this, ASRE has an additional circa 6 MW under construction in various stages of completion that will be coupled to the central network during the summer and early fall of 2016. To date, we have 16.57 – 20.57 MW in sold volume for this year. With a total of 25 MW coupled to the net, ASRE is expected to achieve good profitability. The 2019 goal of having an installed energy capacity of 230 MW stands fast.” 

For more information, please contact:
Frederic Telander, CEO SolTech Energy and ASAB Tel: 08-441 88 46. Email: frederic.telander@soltechenergy.com

Advanced SolTech Sweden in brief
ASAB is the issuer of the bonds and is the only business entity in the SolTech concern with the mission of financing the business operation in China. The business operation itself is carried out by SolTech’s jointly owned subsidiary in China, Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE), whose minority ownership (49%), like that of ASAB, is held by SolTech’s partner in China, Advanced Solar Power Hangzhou Inc. (ASP). The certified Advisor and Market Maker for ASAB is Mangold Fondcommission AB.

SolTech Energy in brief
SolTech Energy develops and sells a solar energy system based on research carried out over several years at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology). The system is a part of a building’s outer shell; specifically, roofs and/or walls formed of glass (panels or glass plates) that function as both weather protection and sun-catchers for the production of heat, hot water and electricity. The assortment of suitable glass also includes unique thin-film solar cells in black and/or semi-transparent glass – or as isolated glass modules in various sizes and formats that promote integration with a building’s outer shell.

SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Also included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy Hangzhou Co. Ltd (ASRE), 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 financed by ASAB and carried out in China by ASRE. Both companies are 51% owned by SolTech and 49% owned by Advanced Solar Power Hangzhou Inc. The business model consists of ASRE being responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned buildings. The customer does not pay for the installed solar energy unit, but instead undersigns a 20-25 yearlong 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, in combination with various forms of subsidies per produced kWh. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2019 an installed and operational capacity of approximately 230 MW, corresponding to
a continuous yearly sales figure of approximately 400 MSEK ($48,800,000 US).

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