Skip to content
AidData logo

Overview

China Eximbank provides a $15 million USD loan to Zhenfa Energy Group for the acquisition of a 51% stake in STR Holdings

Commitments (Constant USD, 2023)$15,383,298
Commitment Year•2014Country of Activity•United StatesDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 11, 2014
Start (actual)
Dec 15, 2014
End (actual)
Dec 15, 2014

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Zhenfa Energy Group Co., Ltd.

Collateral providers

Private Sector

  • Zhen Fa New Energy (U.S.) Co., Ltd.

Loan description

China Eximbank provides a $15 million USD loan to Zhenfa Energy Group for the acquisition of a 51% stake in STR Holdings

Interest type•Unknown

Collateral

This loan was secured by a pledge of all the shares in STR Holdings, Inc. held by Zhen Fa New Energy (U.S.) Co., Ltd.

Narrative

Full Description

Project narrative

On August 11, 2014, Zhen Fa New Energy (U.S.) Co., Ltd. — a Nevada-incorporated indirect wholly-owned subsidiary of Zhenfa Energy Group Co., Ltd., a private sector Chinese solar company — entered into a stock purchase agreement with STR Holdings, Inc. (an American solar panel module and encapsulation manufacture company then listed on the New York Stock Exchange and headquartered in Fairfield, Connecticut) for the acquisition of 27,632,130 shares (~51% stake) of STR Holdings' unissued common stock for $0.784 USD per share (approximately $21.7 million USD). To support this acquisition, the Chongqing Branch of Export-Import Bank of China issued a $15 million USD loan to Zhenfa Energy Group. After completion of the acquisition, this loan was secured by (i.e. collateralized against) a pledge of all the shares in STR Holdings, Inc. held by Zhen Fa New Energy (U.S.) Co., Ltd.. The acquisition was completed on December 15, 2014. It was the first time a Chinese photovoltaic company acquire a company listed in the United States, and the acquisition of STR's photovoltaic EVA sealants, which impact the efficiency of solar panels, was expected to improve China's photovoltaic industry. The China Eximbank loan was still outstanding as of December 31, 2018. As of December 31, 2018, Zhen Fa New Energy (U.S.) Co., Ltd held 9,210,710 shares in STR Holdings, representing 45.7% of the total stock.

Staff comments

1. See slide 13 of https://www.dropbox.com/scl/fi/l59pewju61dhll79k8msy/2.EXIM-Bank.pptx?rlkey=4ffouewoknm33jnz3dykii2i4&dl=0 for more information on the standard terms and conditions that govern M&A (overseas investment) loans from China Eximbank. 2. STR Holdings Inc, (STR) is a renewable equipment company that is headquarters in Connecticut and that designs, develops, and manufactures encapsulants that protect the embedded semiconductor circuits of solar panels. The company develops ethylene-vinyl acetate based encapsulants. 3. This might be considered to be a sensitive, technology industry transaction.