Global law firm White & Case LLP has advised China Development Bank (CDB) on its commitment of up to US$750 million to fund the procurement, construction, installation and operation of solar power projects in New Jersey, USA with a total installed capacity of up to 300MW. The financing comprises both secured EPC financing to be provided to SPI Solar and secured long-term financing to be provided to KDC Solar.
SPI Solar is listed on the Main Board of the New York Stock Exchange (NYSE) and is the US-based subsidiary of LDK Solar, the Jiangxi China-based manufacturer of photovoltaic solar panels used in the project. LDK Solar is incorporated in the Cayman Islands and listed on the NYSE. KDC is a New Jersey-based installer and operator of solar power projects.
The initial deals included US$15 million in EPC financing and US$15 million in term financing for KDC Solar, to be used for the procurement, construction, installation and operation of the "White Rose" solar power project in New Jersey.
Commenting on the deal, Hong Kong-based partner John Shum said: "This deal was interesting in that it involved CDB lending to a US-based Borrower. This in itself raised significant tax and regulatory issues, and we were able to draw upon our US-colleagues' deep expertise and knowledge in these areas to resolve all areas of potential concern. We were also required to manage the different expectations of the parties with respect to market practice, and in this regard our New York and English Law capability and experience across the team proved invaluable."
The deal team was led by partner John Shum, with support from associate Wenxian Chen (Hong Kong), and included a team of 20 further partners and lawyers from across the Firm's Hong Kong, Beijing, New York and Washington offices.
Other firms advising CDB included: Walkers (Cayman Islands) and Wilentz Goldman & Spitzer (New Jersey).
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