Hoku Corporation, a clean energy products and services company, has completed a second credit agreement with a New York branch of the China Construction Bank.
China Construction Bank, the second largest commercial bank by assets in China, has agreed to provide a $28.3 million credit to be used toward completion of the development and construction of the polysilicon production plant under construction by Hoku’s subsidiary, Hoku Materials Inc., in Pocatello.
In May 2010, Hoku reported the receipt of $20 million in similar debt financing from China Merchants Bank.
Hoku has 90 days to borrow all $28.3 million that is available under the credit agreement, and must repay all borrowed amounts on June 14, 2012.
“As we continue to advance construction of our facility and look ahead to the planned ramp up to the commercial production of polysilicon, we are very pleased to have the strong backing of both Tianwei and China Construction Bank,” said Scott Paul, president & CEO of Hoku Corporation.
These funds substantially replace the prepayments formerly expected from Suntech Power, and are expected to be sufficient to commence initial commercial production runs at our polysilicon facility, Paul said.