Narrative
Full Description
Project narrative
On October 5, 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 a polysilicon manufacturing facility in Pocatello, Idaho. The proceeds were used by the borrower specifically for the construction of the Pocatello polysilicon plant, a key project in Hoku’s transition from fuel cells to solar-grade materials. The maturity of the loan is three years, and the interest rate is LIBOR plus 3%. The loan was secured by standby letters of credit arranged by Tianwei, a Chinese state-owned enterprise that had majority ownership of Hoku Corporation at the time. The agreement also required Hoku to reimburse Tianwei for all interest, fees, and expenses associated with the issuance and performance 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/636780/ 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 (3%) to 6 months LIBOR.