6stp_logo.pngInternational Finance Corporation (IFC), an investment unit of the World Bank Group that supports sustainable development, has agreed to grant Suntech Power Holdings Co., Ltd. (NYSE: STP, STP message board) a convertible loan worth $50 million, amid recent claims that lenders increased new credit commitments by 64 percent during the last quarter. Suntech has permission to get the loan before the end of July, if it should have satisfied all applying conditions.

  The manufacturer of crystalline silicon photovoltaic (PV) modules said it plans to strengthen its cash flow position ahead of debt refinancing and its migration to the patented Pluto technology that the company developed in association with University of New South Wales.
Pluto-based production has been proved to be more efficient and cost-effective compared to conventional methods. 

  “These additional funds will strengthen Suntech’s financial position and support our transition to the high efficiency Pluto technology as we progress towards our goal of providing grid parity solar solutions”, stated Dr. Zhengrong Shi, the firm’s chairman and chief executive officer.

  The financial advance bears a fixed rate of 5 percent per annum, to be paid on June 15 and December 15 in each year of duration. In the event that the loan is not converted, repayment would be required in seven years of the drawdown date. The loan’s conversion price was set at $18.00 per American depository share.

  Suntech became the second Chinese solar company to secure a loan in a week, under the current challenging credit environment. Recently, Trina Solar Limited (NYSE: TSL) also announced signing for $57 million in additional credit facilities with Standard Chartered Bank Limited (china), indicating some green shots of a resurgence in the global credit markets. Trina aimed to set the funds aside for the procurement of raw materials and its marketing activities.
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  Suntech stock closed at $18.37 on Thursday, down from $18.57 the previous day.  

Reference:
http://www.suntech-power.com/