China Solar Energy Holdings Ltd said it plans to raise HK$300 million from the sale of 2.18 billion shares to State-owned Guangdong Rising Nonferrous Metals Group Co.

 
The shares will be issued at HK$0.1376, a 20 percent discount to the closing price of HK$0.172 on the last day they traded on May 20, the company said in a statement to the Hong Kong stock exchange today. The shares to be issued represent 23 percent of the company's issued share capital after the subscription, according to the statement.

China Solar, which makes thin film photovoltaic cells, panels and modules for generating solar power, said the proceeds will be used for general working capital and to develop its building integrated photovoltaic (BIPV) business.

The Chinese government said in March last year it would subsidize BIPV applications in large and medium-sized cities and off-grid applications in rural and remote areas, the company said. China Solar will deploy such projects in China through Guangdong Rising's networks.

China Solar's shares, which fell 7.5 percent on the last day they were traded, will resume trading in Hong Kong tomorrow, according to the statement.