Exclusive: CPE Invests 10 Million Euros in Norwegian Solar Firm

By Nina Chestney, Reuters
February 3, 2010

Climate Change Capital Private Equity (CPE) has invested 10 million euros ($14.01 million) in Norwegian solar company Metallkraft AS through a convertible bond issue, the fund told Reuters on Wednesday.

CPE is a 200-million euro fund which invests in clean technology companies. It subscribed for 85 million Norwegian krones (10.3 million euros) out of the 140 million krones total convertible bond issue along with existing shareholders and other undisclosd investors.

The fund told Reuters last week that it was set to lead a multi-million euro investment in the solar industry imminently.

CPE said on Wednesday that the convertible bonds have a 12 percent coupon per year and a three-year term.

Metallkraft, which is not listed on the stock exchange, has developed a patented process to recover the spent slurry used in the silicon solar wafer cutting process.

The company will use the investment to support its new plant in Singapore, which will service a 740 megawatt solar silicon wafer plant being commissioned by the Renewable Energy Corporation.

The proceeds will also support Metallkraft's future expansion plans in China.

"Metallkraft is a perfect fit for CPE's investment strategy. We firmly believe that Metallkraft's management team is one of the best we have seen and in my experience this is the most important investment factor to get right," said Simon Drury, a partner at CPE.

Drury will take a seat on Metallkraft's board of directors.