Hareon Solar plans $611 million share issue

Chinese solar manufacturer Hareon Solar Technology Co. expects to raise 3.80 billion CNY ($611.5 million) through a share issuance in private placement. According to Reuters, the company aims to sell 472 million shares at a price of 8.06 CNY. Hareon Solar plans intends to use net proceeds from the offering to finance the construction of large-scale PV projects in China.
In mid-March, Hareon Solar und Chinese solar developer Shanghai Chaoyang Photovoltaic Co Ltd., a unit of Chinese investment company Rising Development Holdings Ltd., signed a framework agreement for the construction of PV plants with a combined capacity of 800 MW in China. According to a press release from Hareon, a newly created joint venture company will develop the projects over the next 3 years. Under the terms of the agreement, Hareon will be responsible for project development, while Shanghai Chaoyang will be responsible for project financing.
In early January, Bloomberg reported that Hareon Solar aimed to invest 1.78 billion CNY ($294 million) to develop 200 MW of PV power plants in northern China. Hareon intends to build two projects totaling 150 MW in China’s Inner Mongolia Autonomous Region and a 50 MW project in Hebei Province. The company will finance the projects using its own funding as well as bank loans.
Earlier, in November, Hareon said it planned to spend 10 billion CNY to develop 1 GW of PV power projects in the Inner Mongolia Autonomous Region. The company said the 1 GW would be installed in stages in the Alashan region, the westernmost region of Inner Mongolia. At the time, the company said that the first 100 MW, which would cost 1 billion CNY to install, would be completed by the end of 2014.

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