April 23 (Bloomberg) -- Yingli Green Energy Holding Co., the largest solar-panel maker, plans to sell 25 million American depositary receipts in a public offering to raise capital to build power plants.
Yingli expects to use as much as 60 percent of the proceeds for “downstream expansion,” the Baoding, China-based company said in a filing today. “We are considering various strategies to further develop downstream businesses.”
Yingli is expanding its efforts to build solar projects to diversify its operations after the price of panels plunged. The company said April 16 it was forming a 1 billion-yuan ($160 million) fund with Shanghai Sailing Capital Management Co. to invest in solar farms in China. It expects to use about $55 million from the offering for this venture.
Yingli has about 1 gigawatt of solar plants under development in China and another 200 megawatts in other countries. It expects to complete 400 megawatts to 600 megawatts of the China projects this year.
Yingli’s ADR’s slipped 4 percent to $4.33 at the close. They have climbed 99 percent in the past year. Each ADR is worth one ordinary share.
Deutsche Bank AG, Goldman Sachs Group Inc. and HSBC Holdings Plc are underwriting the offering.