Trina Solar To Raise Over RMB 5 Billion To Fund Expansion

To Fund 210mm Production Capacity Expansion Projects, Trina Solar Plans To Raise RMB 5.26 Billion Through Convertible Corporate Bonds

Trina Solar To Raise Over RMB 5 Billion To Fund Expansion

Trina Solar calculates a total investment of RMB 18.85 billion to bring online its 210mm solar cell and module manufacturing capacity expansion projects in China, out of which it plans to raise RMB 5.26 billion through convertible corporate bonds. (Source: Trina Solar)

  • Trina Solar aims to raise RMB 5.26 billion to fund its manufacturing capacity expansion projects
  • It intends to raise this amount by issuing convertible corporate bonds to unspecified objects
  • All of these projects in Yancheng and Suqian will increase the company’s 210mm solar cell and module manufacturing capacity
  • Some of the proceeds will also be invested on replenishing working capital and repaying bank loans

Close on the heels of the company’s various announcements to expand its cumulative module manufacturing capacity to 50 GW by the end of 2021, Trina Solar is now looking for finance to fund the projects, all of which will use 210mm large size monocrystalline silicon wafers (see 8 GW High Efficiency Solar Cell Production By Trina Solar).

It intends to raise RMB 5,265 billion ($814 million) by issuing convertible corporate bonds to unspecified objects, Trina Solar stated in a stock exchange filing, which will effectively solve the problem of the funding gap. Total investment the projects need to come online is RMB 18.85 billion ($2.91 billion) according to the company’s estimates.

These funds will be invested by the Chinese solar cell and module manufacturer on the following:

  • 16 GW high efficiency solar cell project at Yancheng
  • 10 GW high efficiency solar cell project (Suqian Phase II 5 GW)
  • Suqian (Phase III) annual output of 8 GW high efficiency solar cell capacity; and
  • Yancheng Dafeng 10 GW PV module production line

Some of the proceeds raised will also be invested on replenishing working capital and repaying bank loans, it added.

Solar cell production capacity of Trina Solar currently is about 12 GW along with cumulative solar PV module production capacity of around 22 GW which it aims to expand to exceed 50 GW by the end of 2021 with 210mm large size cells contributing more than 80% to the mix.

The 210mm sized modules will improve the company’s product performance in one go, it explained, while also promoting advanced photovoltaics and address demand and supply gap of high efficiency products in the market.

Trina Solar achieved an increase of 18.66% for its operating income during 9M/2020 to a total of RMB 19.926 billion.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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