Hanwha Solutions Implements Self-Rescue Plan Early... Issues RCPS and Securitizes AMPC

Issuance of 300 Billion Won in RCPS
Additional Securitization of 340 Billion Won in AMPC

Hanwha Solutions has issued 300 billion won worth of redeemable convertible preferred shares (RCPS) to raise capital after reducing the size of its rights offering. The company also plans to further enhance its liquidity by additionally securitizing Advanced Manufacturing Production Credit (AMPC) assets.

A panoramic view of Hanwha Q CELLS Cartersville Plant located in Georgia, USA. Hanwha Solutions

On June 25, Hanwha Solutions announced that it had issued 300 billion won worth of RCPS through its Q CELLS business unit’s U.S. engineering, procurement, and construction (EPC) subsidiary. The proceeds will be used to cover the capital shortfall caused by the reduction in the rights offering and to strengthen capital, thereby improving the company’s financial structure.

RCPS are shares that grant both a redemption right, allowing investors to request repayment of their investment at maturity, and a conversion right, enabling conversion of the preferred shares into common shares. Depending on certain conditions, they can be classified as equity on the balance sheet, thus supporting capital expansion and financial structure improvement.

The Q CELLS EPC subsidiary, which issued the RCPS, directly carries out solar power plant and energy storage system (ESS) project EPC in the United States. In 2024, it signed a module supply and EPC contract with Microsoft and is now seeking further business collaboration with global big tech companies amid rising demand for renewable energy.

Hanwha Solutions also anticipates business synergy from operating the full value chain of its solar hub in the U.S. market, which favors locally manufactured products. According to the Inflation Reduction Act (IRA) Investment Tax Credit (ITC), power generation operators who meet certain requirements for using U.S.-made products can receive an additional tax credit equivalent to 10% of their investment.

Furthermore, Hanwha Solutions recently securitized an additional 220.3 million U.S. dollars (approximately 340 billion won) worth of AMPC, including 120.3 million dollars (about 185.7 billion won) for 2025 and 100 million dollars (about 154.3 billion won) for 2026. As a result, the company was able to fully cash out the 373.7 million dollars (about 576.8 billion won) in AMPC received for 2025 ahead of schedule, securing liquidity.

Hanwha Solutions plans to maintain a stable cash flow and continue efforts to improve its financial structure through ongoing AMPC securitization.

Jaebin Lee, Chief Financial Officer (CFO) of Hanwha Solutions, stated, "After swiftly completing the 700 billion won self-rescue plan, we will focus on establishing a foundation for sustainable growth and strengthening future competitiveness. We will strive to ensure the company is fairly valued in the market and do our utmost to enhance shareholder value."

This content was produced with the assistance of AI translation services.