Yingli Green Energy meets with bondholders, proposes repayment extensions

Written By: Stratton Report
April 6, 2016

Yingli Solar

On April 6, Yingli Green Energy Holding Company Limited announced that a subsidiary recently met with holders of RMB1.4 billion ($216 million) worth of medium-term notes due on May 12, 2016 and holders of the remaining portion of its RMB1.0 billion ($150 million) of medium-term notes due on October 13, 2015.

The meetings were arranged by Bank of Communications Co., Ltd., the lead underwriter of the 2011 notes, between Baoding Tianwei Yingli New Energy Company Limited and holders of the notes.

At the first meeting, Tianwei Yingli’s management proposed to the bondholders that repayment of the 2011 notes be extended by two to three years so that it has more time to secure funding necessary for repayment through cash flow from continuing operations and other financing options such as sale of land use rights and new strategic investors. In return, the bondholders proposed to add Yingli China, another subsidiary of Yingli, as a guarantor for the 2011 notes. No agreement was reached at this meeting.

At a second meeting, holders of the remaining unpaid 2010 notes (roughly 30% of the original issue) demanded Tianwei Yingli to repay in full together with accrued interests between April 30, 2016 and May 12, 2016. Tianwei Yingli said it will make its best efforts to repay the remaining portion of the 2010 notes together with accrued interests before the 2011 notes become due on May 12, 2016.