Goldwind clarifies involvement in 31.5-MW Cypriot wind farm

Jul 8, 2013 - Chinese wind turbine maker Xinjiang Goldwind Science & Technology (HKG:2208) on Friday rebuffed media reports that it had provided an EUR-100-million (USD 128m) guaranty to the 31.5-MW Alexigros wind farm project in Cyprus.

According to a news article, Goldwind’s non-wholly-owned unit Vensys Energy AG has provided the guarantee to the project company Ketonis Developments Ltd. The report also mentions the financial crisis in Cyprus and the possible collateral liabilities for Goldwind if the project company makes losses on its deposits at local banks.

Goldwind said that Vensys has not provided the reported guarantee. It has supplied the turbines for the wind farm at market prices. Apart from that, Goldwind’s participation in the project includes a EUR-40-million loan extended for Alexigros by the China Development Bank (CDB), with which the turbine manufacturer has a cooperation agreement. In relation to the loan, Ketonis’s total equity interest, the fixed assets at the Alexigros wind power plant and the electricity charge rights have been pledged to CDB. Goldwind’s part, under the CDB cooperation deal, involves a 10% provision deposited by the company with a CDB branch.

As regards to the financial crisis in Cyprus, Goldwind said that Ketonis had kicked off operation of the Alexigros facility and that its operations have not been negatively impacted by the situation in the country.

(EUR 1 = USD 1.283)

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