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Notes to the financial statements,
Renewable Energy Corporation ASA
REC Annual Report 2011
GUARANTEES
REC ASA had provided parent company guarantees for subsidiaries amounting to NOK 6million at December 31, 2011 and 2010. These are
related to future supply of goods and services and capital expenditure.
REC ASA has cosigned bank guarantees as security for fulfillment of subsidiaries’ commercial obligations in line of ordinary business. The
total amount of bank guarantees for subsidiaries amounted to NOK 279million at December 31, 2011 and NOK 287million at December
31, 2010.
In 2009 REC ASA established a bond of NOK 1.250million and a convertible bond of EUR 320million. In 2010 REC ASA entered into a
NOK 10,000million bank credit and guarantee facilities agreement, and REC ASA and the REC Singapore subsidiaries entered into loan
agreements with Eksportfinans of in total NOK 1,297million. At December 31, 2010, REC ASA had drawn NOK 325million and the
REC subsidiaries in Singapore (RECWafer Pte Ltd, RECModules Pte Ltd, REC Cells Pte Ltd and REC Site Services Pte Ltd) had drawn in
aggregate NOK 922million loans from Eksportfinans. At December 31, 2010, REC ASA had drawn NOK 3,075million as loans under on
the bank facility and utilized NOK 418million under the guarantee facility.
In March 2011, REC cancelled and repaid the whole loan of NOK 1,297million from Eksportfinans and cancelled NOK 1,427million of the
NOK 10,000million bank credit and guarantee facilities agreement thereby reducing the facility amount to NOK 8,573million as a revolving
credit facility.
In April 2011, REC ASA issued new senior unsecured bonds in the Norwegian market; NOK 500million and NOK 700million with five and
seven year tenors respectively. As part of the bond offering, REC bought back NOK 600million of the existing NOK 1,250million bond for
a total of NOK 660million. The primary purpose of the transactions was to extend the company’s debt maturity profile. At December 31,
2011, REC ASA had drawn NOK 2,035million as loans under on the bank facility.
The loans mature as shown in note 17 to the consolidated financial statements for the REC Group. REC ASA and the following direct or
indirect 100 percent owned subsidiaries of REC ASA are jointly and several liable for the above mentioned loans: RECWafer Pte Ltd,
RECModules Pte Ltd, REC Cells Pte Ltd, RECWafer Norway AS, REC ScanCell AS, REC Solar AS, REC Silicon AS, REC Silicon Inc,
REC Advanced Silicon Materials LLC, REC Solar Grade Silicon LLC. RECWafer Pte Ltd, RECModules Pte Ltd and REC Cells Pte Ltd have
limited their liability to the value of their net assets. REC ScanCell AS has during 2011 resigned as jointly and several liable for the above
mentioned loans.
See note 33 to the consolidated financial statements for amendments to the bank credit facility agreement after the reporting period.
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