Taiwan’s biggest solar cell maker Neo Solar Power raised $120 million through a convertible bond on Thursday evening thanks to the support of ING, which provided a standby letter of credit to reassure investors.
The three-year deal offered no coupon and no yield, and a modest 10% conversion premium. The company said that it will use the proceeds to buy raw materials such as silicon wafers, which make up more than half the cost of solar cells.
Neo Solar faced a few challenges given difficult market conditions in Europe after Portugal’s Banco Espirito Santo group delayed payments on some of its debt, prompting a brief panic...
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