Narrative
Full Description
Project narrative
On September 1, 2011, ICBC entered into a $10 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 completion of its polysilicon manufacturing plant in Pocatello, Idaho. The proceeds were used by the borrower specifically for completing construction of the Pocatello polysilicon facility, a key part of the company’s transition into the solar materials sector. The maturity of the loan is three years, and the interest rate is LIBOR plus 2.5%. The facility was secured by standby letters of credit procured by Tianwei, a Chinese state-owned enterprise and majority owner of Hoku. The credit agreement also included provisions for Hoku to reimburse Tianwei for any interest, fees, and expenses related to the issuance and maintenance of those 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/622683/ 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 (2.5%) to 6 months LIBOR.