Yingli Green Energy Holding Company Limited, a solar energy company and 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., has successfully registered its plan to issue up to 2.4 billion RMB-denominated unsecured five-year medium-term notes (the "Registered Issue") with the PRC National Association of Financial Market Institutional Investors ("NAFMII"). The Company further announced that under the Registered Issue, Tianwei Yingli has successfully completed the issuance of RMB 1.0 billion unsecured medium-term notes on October 13, 2010 (the "First Tranche Issue").
The Registered Issue allows Tianwei Yingli to issue RMB-denominated unsecured five-year medium-term notes in two tranches on the PRC inter-bank debenture market. The First Tranche Issue was successfully completed on October 13, 2010 and will mature on October 13, 2015. Tianwei Yingli has an option to call the notes at the end of the third year from issuance. The First Tranche bears a fixed annual interest rate of 4.3% in the first three years, which will increase to 5.7% in the remaining two years if Tianwei Yingli chooses not to call the notes on October 13, 2013. The second tranche with a principle amount of RMB 1.4 billion (the "Second Tranche Issue") is expected to be issued in the second quarter of 2011.
Bank of Communications acted as the lead underwriter and bookrunner for the First 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 pleased to announce Tianwei Yingli as the first Chinese solar company to complete a successful registration and issuance of RMB-denominated medium-term notes. The Registered Issue requires no pledge or guarantee from Tianwei Yingli, the Company or any third party, which demonstrates the investors' confidence in our business development and financial conditions," commented Mr. Bryan Li, Director and Chief Financial Officer of Yingli Green Energy. "With the successful execution of this new way of financing, we are able to broaden our financing channels with relatively lower financing costs and longer term tenure, which we believe will further optimize our overall capital structure and enhance our cash position."