SPI Solar (“SPI”) (OTCBB: SOPW) a vertically integrated photovoltaic (“PV”) solar developer, announced that it has secured construction finance facilities totaling $44 million from China Development Bank (“CDB”) to fund construction of solar energy facility (“SEF”) projects it is working on jointly with KDC Solar in New Jersey.
Separately, LDK Solar (“LDK”) secured financing facilities of $20 million for two projects it is developing through Engineering, Construction and Procurement contracts with SPI in California. The LDK finance facilities will be used to fund construction costs of the California SEFs.
In June 2011, the Company and LDK, a significant shareholder in SPI, announced that they had agreed to provide construction financing and facilitate long-term financing, supported by LDK, of up to $750 million for SEF projects as part of their Preferred Provider Agreement with KDC Solar. LDK’s relationship with the CDB has enabled SPI to significantly enhance its SEF project financing capabilities resulting in this initial tranche of construction finance funds. Additionally, as SPI continues to add to its pipeline of large-scale solar projects, the company is queuing up more projects domestically and internationally with CDB for proposed additional financing arrangements.
“Our successful relationship with CDB is a direct result of our close working relationship with LDK,” said Steve Kircher, CEO for SPI Solar. “As we continue to develop our pipeline of projects globally, our partnership with CDB grows stronger.”
The foregoing summary of the terms and conditions of the construction finance facilities does not purport to be complete and is qualified in its entirety by reference to the full text of the facility agreements filed with the Company’s reports filed with the Securities and Exchange Commission.