SPI Energy to issue $500 million in bonds to expand EV battery products

Written By: Stratton Report
July 5, 2016


On July 5, SPI Energy Co., Ltd. announced that private equity firm GSR GO Scale Capital Advisors, Ltd. to act as an investment advisor to bond holders for $500 million convertible bonds by SPI. The purpose of the bond issue is to fund a capacity expansion of electric vehicle battery products in China and globally.

The five-year convertible bonds will bear interest at the rate of 5% per annum and the initial conversion price will be calculated as the weighted average share price of SPI Energy during the previous 30 trading days.

As part of the proposed transaction, SPI Energy also plans to enter into a strategic cooperation with GSR Ventures portfolio company Boston-Power Inc., a developer and manufacturer of next generation lithium-ion cell and battery technologies.

Xiaofeng Peng, Chairman and CEO of SPI Energy noted:

“The net proceeds from the convertible bonds will be used as general working capital to strengthen the financial position of the Company and for potential acquisitions. We look forward to forming a partnership with Boston-Power and exploring win-win opportunities in the energy storage and EV markets. Working together, SPI Energy and Boston-Power will create a powerful clean energy chain for the transportation industry in China, spanning power generation, power storage, EV rentals and financial services.”