Goldwind cash call to raise USD 700m for Aussie wind, debt repayment

Chinese wind turbine maker Xinjiang Goldwind Science & Tech Co Ltd (HKG:2208) said today it aims to raise CNY 4.68 billion (USD 697m/EUR 615m) net in a rights issue to finance two Australian wind projects, replenish working capital and repay debt.

The gross proceeds are estimated at CNY 4.74 billion. Roughly CNY 1.39 billion of that is planned to be invested in the 527.5-MW Stockyard Hill Wind Farm Project, and CNY 350 million will be poured into the 150-MW Moorabool North Wind Farm Project. These two wind parks represent a combined investment of almost CNY 7 billion.

As part of the rights issue, Goldwind will offer its shareholders 1.9 new shares for every 10 shares they already own. It expects to issue 552.17 million new A shares in China and 123.5 million new H shares in Hong Kong. The subscription price per A share has been set at CNY 7.02 and the subscription price per H share is HKD 8.21.

Goldwind explained that its main source of financing is loan capital, but its high level of debt to asset ratio has limited its ability to secure further debt financing. With the rights issue it aims to replenish operating capital to support its future business development and lower its debt to asset ratio. The company will use CNY 1.5 billion of the proceeds to repay interest-bearing debts, including long-term bank loans, short-term bank loans and medium-term notes due soon.

(CNY 10 = USD 1.48/EUR 1.31)

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