The board of directors of United Photovoltaics Group Limited has recently announced that Datong United Photovoltaics New Energy Co. Ltd, a wholly owned subsidiary of the company, and JIC Leasing Co. Ltd have entered into a finance lease agreement.
The assets subject to the finance lease comprises certain equipment and assets to be used for the operation of a solar power plant with an installed capacity of 100 MW Datong Top Runner Project concentrated solar power plant project, located in the Datong Demonstration Base in Shanxi Province, China, which is now under development and construction by United Photovoltaics Group.
United Photovoltaics Group will receive CNY 467 million (USD71.5 million) for the plant and certain PV equipment. Subsequently, it will start paying almost CNY 486 million in quarterly installments in cash to lease the assets back for two years.
It was noted that the arrangement under the finance lease agreement will be treated as a long-term secured loan facility in accordance with the Hong Kong financial reporting standards.
The Directors consider that the terms and conditions of the finance lease agreement are fair and reasonable and in the interests of the company and its shareholders as a whole.
United Photovoltaics Group is an investment holding company principally engaged in the development, investment, operation and management of solar power plants.