JA Solar reassures bondholders ahead of deadline

JA Solar has begun shipping 2MW of modules to a project in Morocco, as the Chinese company reassures investors that, unlike rival Suntech, it will have no trouble repaying its convertible bonds coming due in May.

Last autumn loss-making JA bought back $89.2m worth of 4.5% senior convertible bonds coming due on 15 May, leaving with some $120m due.

The Shanghai-based company will be able to pay its bondholders on time, chief operating offier Xie Jian tells Bloomberg.

Suntech’s inability to meet its obligations to bondholders this month led to a group of powerful Chinese banks petitioning for its principal manufacturing subsidiary to be taken into insolvency proceedings.

JA’s Xie acknowledges that Suntech’s insolvency will make it more difficult and more expensive for other Chinese solar companies to obtain finance in future. JA reported a 572.1m yuan ($92m) operating Log in to read complete article.

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