Advanced Soltech raises 18.2 MCNY (27.3 MSEK) through an 8-year sales-leaseback agreement of a newly built facility of 6 MW. The loan has a maturity of 8 years with a floating interest rate of 5.9% and the loan-to-value ratio increases by approximately 70%, compared to approximately 50% on previous financing. The company believes that it will be able to raise new financing on similar or better terms in the future. The loan will be used to complete solar power plants in China in accordance with the communicated forecast on August 7, 2023.
Max Metelius, CEO of Advanced Soltech, comments:
Our goal of replacing the expensive financing in Sweden with significantly cheaper financing in China has proven successful. The interest rate is lower, and the maturity is longer, which benefits both our profitability and improves our cash flow. We have recently extended the last remaining bond SOLT4 until 8 November 2024, which gives us plenty of time to find suitable financing with good terms for repayment.