Hong Kong, China, 21 April 2015 - United Photovoltaics Group Limited (“United PV” or the “Company”, stock code: 00686.HK, whose largest shareholder is China Merchants New Energy Group “CMNE”), a leading solar power plant investor and operator in China, is pleased to announce today that, the Company entered into the Convertible Bond Subscription Agreement (“Agreement”) with Peak Reinsurance Company Limited (“Peak Reinsurance”) under Fosun International Limited (“Fosun International”, 00656.HK).
Pursuant to the agreement, Peak Reinsurance will subscribe for the 7.5% three-year convertible bonds in the principal amount of US$15 million issued by the Company, at the conversion price of HK$1.03. The proceeds from which will be used to acquire a 20MW solar power plant project. Peak Reinsurance is a company whose 85.1% equity interest is indirectly held by Fosun International, one of the largest privately owned conglomerates in China. Fosun International holds certain convertible bonds of the Company due 2016 in the principal amount of US$35 million convertible.
Following the cooperation in 2013, this subscription is Fosun International’s second capital injection to United PV. Fosun International’s entry to the new energy industry via its subsidiary reinsurance company, which needs stable and long-term capital growth, signifies its recognition and confidence in industry prospect and United PV’s professional performance. Looking forward, United PV will actively engage insurance capital to explore asset securitization as a new model. Joining hands with Fosun International will enhance the Company’s working capital, capital base and financial situation, driving United PV’s expansion in solar power industry and strengthening its core business development. As a leading enterprise in Chinese solar power industry, United PV will accelerate the development and increase the market share with staunch support of insurance fund. The Company welcomes any future cooperation with insurance companies in China or abroad, to embrace the era of green energy together.
