Suntech secures $50M loan with IFC

China’s Suntech Power Holdings (NYSE:STP) said today it signed a $50 million convertible loan agreement with the IFC, a member of the World Bank Group. Suntech is the world’s largest manufacturer of crystalline silicon photovoltaic (PV) modules.

The convertible loan, at a fixed rate of 5 percent per year, would be used to support Suntech’s focus on its new Pluto technology and for debt refinancing requirements, according to a news release.

"These additional funds will strengthen Suntech's financial position and support our transition to the high-efficiency Pluto technology as we progress toward our goal of providing grid parity solar solutions,” said Suntech’s CEO Zhengrong Shi, in the release.

Suntech’s patent-pending Pluto technology for crystalline silicon solar cells boosts power output by as much as 12 percent compared to conventional methods, the company said. Suntech has regional headquarters in China, Switzerland and San Francisco.

If it’s not converted, the loan is expected to be repayable in seven years. The company said it thinks it can satisfy loan conditions within the next 30 days. The loan’s conversion price is $18 per American depositary share.

Suntech is leading supplier to its native China, and is among the top contenders for a new 10 megawatt solar power station in Dunhuang, Gansu province, China (see Suntech among 50 global bids for solar project in China). The project, estimated at RMB 500 million ($73 million), is expected to be 70 percent traditional crystalline silicon solar panels with the remaining 30 percent made up of thin-film panels and concentrated solar PV.

In May, Suntech also announced plans to start manufacturing its crystalline silicon PV modules in the United States (see Chinese solar giant Suntech seeks base for US production).