Nitol Solar scores International Finance Corporation Investment

Polysilicon production to begin mid 2009.

Last Thursday, July 31, 2008, Nitol Solar Limited and the International Finance Corporation (IFC), one of the five institutions comprising The World Bank Group, announced a $50 million equity investment and $25 million loan by IFC to Nitol Solar per the dueling press releases:

Nitol Solar and IFC Announce Strategic Investment
IFC Supports Solar Cell Technology in Russia, Helping Alleviate Global Shortage

The Summary of Proposed Investment notes the investment will facilitate construction of Nitol Solar’s $450 million polysilicon manufacturing plant with 3700 MT (metric ton) per year annual capacity. The Nitol Solar plant is located in the Usolie-Sibirskoe, Irkutsk region, Russia, per my earlier post, From Siberia with Polysilicon.

The IFC investment follows the March 13, 2008, Nitol Solar and Suntech Announce Strategic Investment expanding upon the original Suntech Announces First Phase Polysilicon Supply Agreement with Nitol Solar. In this agreement, Suntech Power Holdings Co., Ltd. (NYSE:STP):

will acquire newly issued ordinary shares comprising a minority interest in Nitol Solar Ltd. for a total consideration of up to $100 million, subject to the satisfaction of certain conditions.

Later, Nitol Solar and Suntech Expand Polysilicon Supply Agreement again resulting in a substantial increase in the polysilicon committed volumes to be supplied between 2009 and 2015 to Suntech and:

Suntech has already paid the first $33 million installment of this investment to Nitol Solar.

Besides Suntech, Nitol Solar has announced polysilicon deals with ersol Solar Energy AG (see ersol and NITOL Group sign Polysilicon supply Letter of Intent), Motech Industries, Inc., Trina Solar Limited, and Evergreen Solar, Inc.

On the technical front, Nitol Solar produced first industrial batch of Polysilicon claims the first batch of polysilicon produced from the plant is suitable for manufacturing solar wafers per testing by the Evans Analytical Group (EAG Limited, LON:EAG). Suitability of the polysilicon for monocrystalline silicon wafers is not specified.

Although Nitol Solar delayed their IPO (Initial Public Offering) in February 2008 (see Russia's Nitol Solar postpones IPO- source) because of market conditions, they have rounded out their Management Team, Board of Directors, and Scientific Counsel with international talent.

I noticed a bit of revisionist history in Nitol Solar’s previous press releases. An over enthusiast marcom or public relations team updated all prior references from the “Nitol Group” to “Nitol Solar”. I wonder if the IFC will help Nitol Solar rectify these fine corporate governance points since the:

IFC is also working with Nitol Solar to enhance its environmental and social practices and assist the company by implementing international best practices in corporate governance.

And don’t forget Nitol Solar =is= a polysilicon reactor customer of the Class Action suited GT Solar International, Inc. (NASDAQ:SOLR) per GT Solar Signs $49M Polysilicon Reactor Contract with Nitol Group or the revised Nitol Solar and GT Solar Signed $49M Polysilicon Reactor Contract.