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Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Wuxi Suntech Power Co., Ltd.
Electrical Machinery, Equipment and Components (Electric Lighting, Motors, Batteries, Insulated Wires and Cables, Fiber Optic Cable, Carbon and Graphite Products, etc.)
Date SPI disclosed
May 15, 2009
Projected board date
June 18, 2009
Invested: July 8, 2009
Signed: June 30, 2009
Approved: June 25, 2009
View Environmental & Social Review Summary (ESRS),
IFC will provide a convertible loan of up to $100 million to support Suntech’s 2009-2013 capital expenditure plans and debt refinancing requirements.
Project sponsor and major shareholders of project company
Suntech Power Holdings Co., Ltd, headquartered in Wuxi, Jiangsu Province, China is a global leader in photovoltaic solar cells and modules. Suntech designs, develops, manufactures, and markets various PV cells and modules to provide electric power for residential, commercial, industrial, and public utility applications worldwide. Suntech’s key markets worldwide include Germany, Spain, the United States, China, Japan, Italy and South Korea.
Suntech was founded in 2001 by Dr. Shi Zhengrong and was floated on the New Stock Exchange in 2005. Dr. Shi, chief executive officer and chairman of its board of directors holds 35.1% of the Company. Other executives and managers hold less than 1.0% altogether. The remaining is a free float and is mostly held by institutional & mutual fund owners.
Total project cost and amount and nature of IFC's investment
IFC will provide a convertible loan for IFC’s own account up to $100 million.
IFC investment as approved by Board
50 million (USD)
IFC Investment (million USD)
* These investment figures are indicative
Location of project and description of site
Suntech, headquartered in Wuxi, Jiangsu Province, and has 3 more production sites that are located in Luoyang, Qinghai and Shanghai. Suntech has around 9,000 employees globally. The capital expenditure will take place in the Company’s existing sites in Wuxi.
Anticipated development impact of the project
As a result of the Project, Suntech is expected to (i) continue to produce solar panels over the life of the Project which should reduce CO2 by 93 million tons over the modules’ usable lives, (ii) create up to 1,200 highly-skilled jobs including 360 jobs for women; and (iii) support the development of a solar power industry in China and globally, since Suntech is a leader in the solar sector.
IFC's expected development contribution
IFC’s convertible loan will act as an anchor for the Company to finance its capital expenditure program and lengthen the duration of its debt. The proposed IFC financing is also expected to enable Suntech to attract further long-term capital providers.
Environmental and social issues - Category B
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects as a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental, health and safety, human resources and social issues that were reviewed included the following:
- environmental and social management system;
- labor and working conditions;
- quality and sustainability of water resources;
- emissions to the environment – air, water and subsurface;
- solid and hazardous materials management including transportation, handling and storage of hazardous gases;
- life and fire safety;
- community and occupational health and safety;
- land acquisition and involuntary settlement;
- energy use and efficiency; and
- community engagement.
Suntech has committed to an environmental and social action plan to address key issues and gaps to ensure compliance with local regulatory requirements as well as consistency with IFC Performance Standards and applicable sections of environmental, health and safety guidelines.
Suntech’s production of solar cells and modules provides a significant positive impact on global climate change and its operations create jobs and opportunities for local communities, with no adverse social impacts. Environmental and Social Impact Assessments were completed for its facilities according to host country regulatory requirements.
For inquiries about the project, contact:
Mr. Hao Zhi
Suntech Power Holdings Co., Ltd
9 Xinhua Road
New District, Wuxi
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: +1 202 473 3800
Fax: +1 202 974 4384
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