The capital will primarily be used to repay the sale and leaseback facility with JiangSu Financial Leasing Co., Ltd. The new refinancing structure involves the sale of a portfolio of solar PV installations with a capacity of 250 MW. Payments will be made in equal installments over ten years, covering both principal and interest, with a variable annual interest rate between 4% and 5%. Gigasun has a right, at the end of the 10-year period, to repurchase the sold solar PV installations at a price of CNY 1,000 (approximately SEK 1,500).

The agreed refinancing has begun and is expected to continue for 6-12 months. The sale and leaseback financing is similar to a traditional bank loan, but instead of providing collateral to the lender, ownership of the solar PV installations is transferred to the lender against a purchase price. The lessee has the right to repurchase the solar PV installations for a symbolic amount once the entire purchase price and associated interest have been paid as lease payments.

CEO Max Metelius comments:

"The new financing in China is very positive news. We receive a significantly lower interest rate and extended term, as well as a higher loan-to-value ratio, which is highly beneficial for both our profitability and cash flow. The new financing creates value and increases Gigasun's attractiveness in the market. This transaction will contribute to a positive outcome of our ongoing strategic review."