HONG KONG, Sept. 2, 2015 (GLOBE NEWSWIRE) -- Sky Solar Holdings, Ltd. (NASDAQ:SKYS) ("Sky Solar" or "the Company"), a global developer, owner and operator of solar parks, today announced that its subsidiary Sky Solar Japan K.K. ("Sky Solar Japan") signed certain definitive agreements (the "Amended Agreements') with its existing tokumei kumiai (TK, or silent) partner to increase the TK partner's capital contribution to the TK partnership with respect to the 67 solar parks with an aggregate capacity of 107.9 MW in Japan developed and operated by Sky Solar Japan. Sky Solar Japan and the TK partner first entered into certain original TK partnership agreements on September 9, 2014. According to the Amended Agreements, the TK partner will invest an additional JPY4 billion over the JPY4.93 billion contributed to the TK partnership so far.
Under the terms of the Amended Agreements, JPY2 billion from the proceeds of the TK partner's additional contribution will be used by Sky Solar Japan to extend a loan (the "Up-Stream Loan") of the same principal amount to Sky International Enterprise Group Ltd. ("SIE"). The Up-Stream Loan will have a 12-month term and bear 5% interest rate per annum. The proceeds of the Up-Stream Loan shall be used for, among others, the development of certain PV projects in Asia and the Americas. The remaining JPY2 billion from the proceeds of the TK partner's additional contribution will be used by Sky Solar Japan to continue executing its project pipeline in Japan.
Sky Solar Japan and the TK partner will negotiate definitive agreements for further financing arrangements to facilitate the continued development of its project pipeline.
Mr. Weili Su, founder, chairman and chief executive officer of Sky Solar, commented, "We are delighted to expand our working relationship with our TK partner to continue building out our strong project pipeline there. We believe this valuable partnership and the terms of our agreement will allow us to maximize shareholder value by reducing our cost of capital as we work to securitize these assets in Japan and further our industry leadership position in this market."
About Sky Solar Holdings, Ltd.
Sky Solar is a global independent power producer ("IPP") that develops, owns and operates solar parks and generates revenue primarily by selling electricity. Since its inception, Sky Solar has focused on the downstream solar market and has developed projects in Asia, South America, Europe, North America and Africa. The Company's broad geographic reach and established presence across key solar markets are significant differentiators that provide global opportunities and mitigate country-specific risks. Sky Solar aims to establish operations in select geographies with highly attractive solar radiation, regulatory environments, power pricing, land availability, financial access and overall power market trends. As a result of its focus on the downstream photovoltaic segment, Sky Solar is technology agnostic and is able to customize its solar parks based on local environmental and regulatory requirements. As of June 30, 2015, the Company has developed 237 solar parks with an aggregate capacity of 215.0 MW and owned and operated 93.2 MW of solar parks.
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's operations and business outlook contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Sky Solar's filings with the U.S. Securities and Exchange Commission, including its final prospectus filed pursuant to Rule 424(b)(4). Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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Sky Solar Holdings Ltd.