Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which markets its products under the brand "Yingli Solar," announced that one of its primary operating subsidiaries, Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli"), has successfully completed its issuance of the second tranche 1.4 billion (US$212.1 million) RMB-denominated unsecured five-year medium-term notes on May 12, 2011 (the "Second Tranche Issue"). The Second Tranche Issue bears a fixed annual interest of 6.15%.
Bank of Communications acted as the lead underwriter and bookrunner for the Second Tranche Issue with standby commitment. Approximately 70% of the proceeds will be used to enhance Tianwei Yingli's working capital, and the remaining 30% will be used to repay bank loans of higher interest rates.
"We are extremely happy for the successful issuance of the second tranche of the medium-term notes. The issuance recorded an oversubscription of 210%, which showed investors' confidence in our sustainable operations." commented Mr. Bryan Li, Director and Chief Financial Officer of Yingli Green Energy. "The interest rate of 6.15% for the Second Tranche Issue is highly commendable, compared to current benchmark interest rate of 6.65% for five-year bank borrowings. This successful issuance will further enhance our working capital and optimize our overall capital structure."
Relevant legal documentation, including the offering circular and issuance announcement of the Second Tranche Issue are published on the websites of ChinaMoney (//www.chinamoney.com.cn) and ChinaBond (//www.chinabond.com.cn).
In October 2010, Tianwei Yingli registered its plan to issue up to 2.4 billion RMB-denominated unsecured five-year medium-term notes with the PRC National Association of Financial Market Institutional Investors, and completed the issuance of the first tranche of RMB 1.0 billion unsecured medium-term notes on October 13, 2010.
