Shunfeng issuing $297m of bonds

Shunfeng Photovoltaic International is issuing roughly $297m worth of five-year convertible bonds, partly to fund development of the 10GW of PV capacity it plans to build by late 2016.

Partners Capital Securities is expected to wrap up the placement on 30 June, Shunfeng said in a filing to the Hong Kong stock exchange this week. 

The bonds will offer a 4% interest rate with semi-annual payments, representing 9.7% of Shunfeng's expanded share capital if fully converted.

Shunfeng, based in China's Jiangsu province, claimed 890MW of grid-connected PV capacity as of 23 March.

Last week, Shunfeng's shareholders approved its takeover of Wuxi Suntech, effectively giving it control over Suntech Power Holdings' (SPH) plants, patents and brand name. However, SPH still controls most of its extensive sales and distribution networks.