The credit facility will exclusively be used for financing LDK Solar’s onshore operations within Jiangxi Province, but not to service any existing indebtedness, whether onshore or offshore.
The facility, which will include a set of loans, will be terminated on November 10, 2016, and each loan should not have a maturity date later than that termination date.
Each drawdown will be made in the absolute discretion of the syndicate, subject to conditions including early repayment imposed by the syndicate on a draw-specific basis. The first drawdown of RMB200m (€24.2m) was approved and completed on November 21, 2013.
The syndicate of banks has set up a working group to monitor the use of the funds and controlled bank accounts arrangements will be implemented.
LDK Solar’s onshore subsidiaries, Jiangxi LDK PV Silicon Technology, Jiangxi LDK Solar Polysilicon, LDK Solar Hi-Tech (Xinyu) and LDK Solar Hi-Tech (Nanchang), and by Peng Xiaofeng and his wife will guarantee the facility and any of its outstanding loans.
LDK Solar president and CEO Sam Tong the company has entered into a financing arrangement with the banking syndicate in China.
"While we are beginning to experience improvements in our business operations, we believe this discretionary loan facility will provide LDK Solar with the necessary support to ramp up our manufacturing operations of polysilicon, wafers, cells and modules in Jiangxi Province when business circumstances so permit.
"When the global solar industry regains strength, we are committed to taking advantage of new opportunities that emerge," added Tong.
