Hanwha Solutions Sells US Venture Investment Fund for 125.5 Billion Won...Executes Self-Help Measures for Rights Offering

Supplementing Debt Repayment Resources
Accelerating Financial Structure Improvement
Credit Rating Maintained at 'AA-'

After issuing redeemable convertible preferred shares (RCPS) to raise 300 billion won, Hanwha Solutions secured an additional approximately 125.5 billion won through the sale of a U.S. venture investment fund. The proceeds from the fund sale will be used to supplement debt repayment resources needed due to the reduction in the size of the rights offering and to accelerate improvements to the company’s financial structure.

Aerial view of Hanwha Solutions Q CELLS division Jincheon Plant in Chungbuk. Photo by The Asia Business Daily

According to Hanwha Solutions on July 16, the company recently sold a venture investment fund, which it had invested in to identify innovative U.S. companies, for 84.3 million dollars (about 125.5 billion won). Since 2022, Hanwha Solutions has invested in this fund through subsidiaries to proactively secure opportunities for business cooperation in the U.S. related to the energy transition, circular economy, and carbon utilization. This sale was intended to reduce the burden on shareholders in connection with Hanwha Solutions’ preceding rights offering.

Hanwha Solutions also plans to swiftly execute the plan to liquidate investment assets worth 300 billion won, as stated during the amendment process for the rights offering. By pursuing both the rights offering and self-rescue measures, the company aims to proceed as planned with investments for future growth and the strengthening of financial stability, while focusing on boosting mid- and long-term business competitiveness and enhancing shareholder value.

Thanks to the self-rescue measures implemented in conjunction with the current rights offering, credit rating agencies maintained Hanwha Solutions’ credit rating at 'AA-' in June this year. This contrasts with the downward adjustments in credit ratings and outlooks experienced by some other companies in the petrochemical sector.

Jaebin Lee, Chief Financial Officer of Hanwha Solutions, stated, “Once the rights offering is completed, we will proceed as planned with investments for future growth and financial structure improvement,” adding, “With the completion of the Cartersville plant, we have established a foundation for vertical integration of the solar business in the United States and expect to see a continued stable performance in the renewable energy sector.”

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