Suntech raises US$575 mln for expansion purposes

Suntech Power Holdings Co., Ltd. announced the closing of the offering of US$575 million of 3.00% convertible senior notes due 2013 to qualified institutional buyers.

The aggregate principal amount of notes sold reflects the exercise in full by the initial purchasers of their option to buy up to an additional US$75 million of the notes to cover over-allotments.

Suntech had previously stated that US$300 million of the net proceeds from the offering would be allocated to upstream supplies and the balance for production capacity expansion and new technology commercialization. This includes general corporate purposes but also for potential acquisitions and investments in complementary businesses that will aid in its aggressive expansion plans.

Suntech is the largest solar module manufacturer in the world with four production sites at Wuxi, Luoyang, Qinghai and Shanghai (under construction) and a total of 4,000 global employees.