Friday, December 7, 2007

Neo Solar Power secures NT$4 billion syndicated loan

Nuying Huang, Taipei; Emily Chuang, DIGITIMES [Friday 7 December 2007]

Neo Solar Power on December 6 announced that it has signed syndicated loan of NT$4 billion (US$123 million) with five banks to fund its expansion and materials procurement.

Frank Huang, chairman of Neo Solar and Powerchip Semiconductor Corporation (PSC), commented the performance of Neo Solar Power is the best among the PSC Group. The company had an annual output of 36MWp in 2007 while capacity for the full year of 2008 is already nearly fully occupied, Huang added.

Neo Solar Power CEO KS Lin added that the company has a capacity of 60MWp at present. With a new plant to come on board in 2008, annual capacity and annual output will reach 210MWp and 150MWp, respectively.

Nearly 70% of Neo Solar's materials will be supplied on a contract basis for the next two years, pointed out Lin. China-based supplier LDK Solar has agreed to settle orders with the company based on new pricing in 2010 as the company plans to enter polysilicon production, noted industry sources.

The company is also preparing a NT$3 billion fund raising project which will be carried out at the end of the year or next year, according to market sources. The industry watchers estimated that the company will see its annual revenues triple to NT$14 billion in 2008.

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