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Overview

ICBC (New York Branch) provides $24.7 million USD loan to Hoku Corporation for general corporate and working capital purposes in June 2011

Commitments (Constant USD, 2023)$28,071,480
Commitment Year•2011Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•United StatesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 2, 2011
Last repayment (originally scheduled)
May 31, 2016

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% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned companies

  • Hoku Corporation

Collateral providers

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

State-owned companies

  • Tianwei New Energy Holdings Co., Ltd

Loan description

ICBC (New York Branch) provides $24.7 million USD loan to Hoku Corporation for general corporate and working capital purposes in June 2011

Interest rate (t₀)•4.20138%Interest type•Variable Interest RateMaturity•5 years

Collateral

The loan was fully secured by a standby letter of credit with a drawable amount of $30.1 million USD, issued by the Sichuan Branch of ICBC and procured by Tianwei in favor of ICBC’s New York Branch. Hoku also entered into a reimbursement agreement with Tianwei, agreeing to repay all interest, fees, and expenses related to the issuance and performance of the standby letter of credit.

Narrative

Full Description

Project narrative

On June 2, 2011, ICBC entered into a $24.7 million USD loan agreement with Hoku Corporation — a now-defunct Idaho-based clean energy company that specialized in polysilicon production for solar panels — to support the company’s continued project development and corporate financing needs. The proceeds were used by the borrower for general corporate purposes, particularly in relation to the construction and advancement of its polysilicon manufacturing facility in Pocatello, Idaho. The maturity of the loan is the earlier of June 2, 2016 or the tenth business day prior to the expiration or termination of the standby letter of credit. The interest rate is LIBOR plus 3.8%. The loan was fully secured by a standby letter of credit with a drawable amount of $30.1 million USD, issued by the Sichuan Branch of ICBC and procured by Tianwei in favor of ICBC’s New York Branch. Hoku also entered into a reimbursement agreement with Tianwei, agreeing to repay all interest, fees, and expenses related to the issuance and performance of the standby letter of credit. The full $24.7 million USD was disbursed in June 2011.

Staff comments

1. The entirety of the loan agreement is not available. However, Form 10-K from the company is available for descriptions of the loan. It can be accessed at https://getfilings.com/sec-filings/110715/HOKU-SCIENTIFIC-INC_10-K/. 2. Hoku Corporation was a U.S.-based clean energy company headquartered in Pocatello, Idaho. It began in fuel cell technology before transitioning to solar manufacturing. In 2009, it became majority-owned by China’s Tianwei New Energy Holdings. Hoku declared bankruptcy in 2013, and its assets were liquidated. 3. AidData estimates the interest rate by adding the margin (2%) to 6 months LIBOR.