Hanwha Solutions announces sale of AMPC 1hundred million won3million dollars (approximately 2hundred billion won)
Hanwha Solutions 1hundred million won3million dollars (approximately 2hundred billion won) worth of U.S. Advanced Manufacturing Production Credit (AMPC) rights, securing early cash proceeds through a sale, 21said. The company said it would continue to pursue early monetization of AMPC rights to improve its financial structure and secure liquidity.
Get free 한화솔루션 email updates.
Bullstory sends one daily email when new analysis or important company news is available.
Hanwha Solutions said it sold 21of its U.S. Advanced Manufacturing Production Credit (AMPC) rights, worth 1hundred million won3million dollars (approximately 2hundred billion won). The company said the sale allowed it to monetize the rights early. It did not disclose detailed terms regarding the timing of the sale or the transaction structure.
AMPC is a tax benefit that applies to solar products manufactured in the United States. Hanwha Solutions said it receives AMPC of around 7cents per watt for solar modules produced at its Dalton and Cartersville plants in Georgia. The rights can be received in the form of subsidies or tax-credit credits.
Tax-credit credits can be transferred to the3party. A securitization market has developed in the United States for selling AMPC entitlements in advance. Hanwha Solutions raised cash by selling its rights in this market.
Hanwha Solutions said it plans to continue pursuing the early monetization of AMPC to improve its financial structure and secure liquidity. The company explained that tax credit rights generated by its North American production capacity are traded in financial markets. The company said the AMPC sale is an example of the rights being recognized as having tangible asset value.