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Overview

China Development Bank provides a $6.8 million USD loan to LDK Solar for the 4.96 MW North Palm Springs 4A Project (Linked to Record ID#105902)

Commitments (Constant USD, 2023)$7,728,181
Commitment Year2011Country of ActivityUnited StatesDirect Recipient Country of IncorporationCayman IslandsSectorEnergyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 30, 2011
End (actual)
Jan 1, 2012
Last repayment (originally scheduled)
Dec 30, 2026

Geospatial footprint

Map overview

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The proceeds of the $6,800,000 USD and a RMB 35,000,000 facility were used for the financing of North Palm Springs 4A Project, an electricity grid-connected DC single axis tracker, utility-scale PV solar power generation plant with installed capacity of 4.96 MW, two PV systems located on 23 acres of land at 19th Avenue & Karen Drive located in Palm Springs, Riverside County, California. More detailed locational information can be found at https://www.openstreetmap.org/way/867441882

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

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • LDK Solar Co., Ltd.

Implementing agencies

Private Sector

  • LDK Solar Co., Ltd.
  • Solar Power, Inc. (SPI)

Collateral providers

Private Sector

  • LDK Solar USA, Inc.

Loan desecription

China Development Bank provides a $6.8 million USD loan to LDK Solar for the 4.96 MW North Palm Springs 4A Project

Interest typeUnknownMaturity15 years

Collateral

This loan was secured by a share pledge of 100% LLC membership in North Palm Springs Investments, LLC (NPSLLC) — a California-incorporated wholly-owned subsidiary of LDK Solar USA, Inc. — pledged by LDK Solar USA, Inc. — a California-incorporated wholly-owned subsidiary of LDK Solar Co., Ltd. — per a Share Pledge Agreement dated December 30, 2011.

Narrative

Full Description

Project narrative

On December 30, 2011, the Jiangxi Branch of China Development Bank Corporation (CDB) entered into a $7,000,000 USD facility agreement and a $6,800,000 USD and RMB 35,000,000 facility agreement with LDK Solar Co., Ltd. — a Cayman Islands-incorporated Jiangxi, China-based manufacturer of photovoltaic solar panels listed on the New York Stock Exchange (NYSE) — for the North Palm Springs Solar Power Plant Project. The $7 million USD loan carried a maturity period of approximately 15.211 years and a final maturity date of March 13, 2027. The $6.8 million USD loan carried a maturity period of 15 years and a final maturity date of December 30, 2026. The RMB 35 million loan carried a maturity period of approximately 15.307 years and a final maturity date of April 17, 2027. This loan was governed by English law. This loan was secured by (i.e. collateralized against) a share pledge of 100% LLC membership in North Palm Springs Investments, LLC (NPSLLC) — a California-incorporated wholly-owned subsidiary of LDK Solar USA, Inc. — pledged by LDK Solar USA, Inc. — a California-incorporated wholly-owned subsidiary of LDK Solar — per a Share Pledge Agreement dated December 30, 2011, being CDB's sole recourse to LDK Solar, with the share pledge as a condition precedent to the loan's issuance. Record ID#105900 captures the $7 million USD facility. Record ID#105901 captures the $6.8 million USD facility. Record ID#105902 captures the RMB 35 million facility. The proceeds of the $7,000,000 USD facility were used for the financing of a NPS1A North Palm Springs 1A Project, an electricity grid-connected DC single axis tracker, utility-scale photovoltaic (PV) solar power generation plant with installed capacity of 2.83 MW located on 14 acres of land at Dillon Road & Worsley Road and the proceeds of the $6,800,000 USD and a RMB 35,000,000 facility were used for the financing of North Palm Springs 4A Project, an electricity grid-connected DC single axis tracker, utility-scale PV solar power generation plant with installed capacity of 4.96 MW, two PV systems located on 23 acres of land at 19th Avenue & Karen Drive, together known as the North Palm Springs Solar Power Plant Project located in Palm Springs, Riverside County, California. LDK Solar served as the Engineering, Construction and Procurement (EPC) contracts with SPI in California. SPI Solar won an EPC contract in July 2011. Both projects were commissioned in 2012, with 20-year Power Purchase Agreements (PPAs) with Southern California Edison. As of March 31, 2014, $6,520,000 USD was outstanding under the $7 million USD loan, $6,080,000 USD was outstanding under the $6.8 million USD, and RMB 32,600,000 was outstanding under the RMB 35,000,000. LDK Solar went into liquidation in the Grand Court of the Cayman Islands per a wind up petition filed on February 21, 2024. On October 21, 2014, LDK Solar Systems Inc., LDK Solar USA Inc. and LDK Solar Tech USA Inc. filed a prepackaged Chapter 11 reorganization plan with the U.S. Bankruptcy Court for the District of Delaware with a debt-for-equity swap. Global drops in the price of solar products and decreased demand negatively impacted LDK Solar. On October 31, 2017, Greenbacker Renewable Energy Company LLC acquired all of the outstanding equity of North Palm Springs Investments, LLC for $7,700,000 USD from LDK Solar USA.