Narrative
Full Description
Project narrative
On April 6, 2011, ICBC entered into a $13.6 million USD loan agreement with Hoku Corporation — a now-defunct Idaho-based clean energy company that specialized in polysilicon production for solar panels — to finance the construction of its polysilicon manufacturing facility in Pocatello, Idaho. The proceeds were used by the borrower specifically for the construction of the polysilicon plant in Pocatello, a project that was central to the company’s shift from fuel cells to solar-grade materials. The maturity of the loan is April 6, 2014, and the interest rate is LIBOR plus 2.7%. The loan was fully secured by standby letters of credit procured by Tianwei, a Chinese state-owned enterprise that had majority ownership of Hoku Corporation at the time. The agreement also included a reimbursement clause under which Hoku agreed to repay Tianwei for all costs associated with the issuance of the standby letters of credit.
Staff comments
1. The entirety of the loan agreement can be accessed at https://contracts.justia.com/companies/hoku-corp-35627/contract/616580/ 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 (2.7%) to 6 months LIBOR.