Deadly Pollution Breathes New Life Into Solar Debt: China Credit
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China’s pledge to reduce pollution after air-quality in Beijing hit hazardous levels on 20 days last month has cut financing costs for the world’s biggest maker of solar wafers to a four-month low.
The yield for February 2015 notes of GCL-Poly Energy Holdings Ltd. has fallen 109 basis points from a six-month high on Dec. 27 to 5.793 percent, the lowest since Sept. 12. That’s more than the 17 basis point drop in yields for three-year AAA corporate debt tracked by ChinaBond. China’s six biggest solar companies, which have $2 billion of outstanding bonds, may post losses of more than $2 billion in 2012 on a glut in supply of panels, according to analyst estimates compiled by Bloomberg.