Sunpower Group said on Monday that it would issued US$20 million in convertible bonds as well as warrants to fund its green investment related business.
The net proceeds of the issue of the convertible bonds and warrants will be used for the continued expansion and acquisition of green investment plants and construction costs, it said.
“The green investment business has been earmarked as the company’s value creator and growth driver, which generate long-term, recurring and high quality income and cashflows as well as return on equity satisfactory to the company,” Sunpower said.
The company will issue US$17.14 million in tranche 2 convertible bonds and 14.11 million warrants to Blue Starry Energy, which is indirectly and beneficially owned by DCP Capital Partners, Sunpower said in a filing to SGX after the market close on Monday.
In addition, it will issue US$2.86 million in tranche 2 convertible bonds and 2.35 million warrants to Glory Sky Vision, which is indirectly and beneficially owned by CDH China Management, it said.
The applicable interest for the tranche 2 convertible bonds is a cash coupon of 2.5 percent a year and the difference between the amount of dividends Sunpower pays in a financial year which would have been received by the investors on a converted basis and that year’s amount of the cash coupon, it said.
Each warrant carries the right to subscribe for one warrant share at the exercise price of S$0.70 a warrant share if exercised before 31 December 2019 or S$0.80 a warrant share if it is exercised between 1 January 2020 and 31 December 2020, Sunpower said.
The tranche 2 convertible bonds and the warrants won’t be listed on any stock exchanges, it said.