Hanwha Solutions moves early on self-rescue plan, issues 300 billion won in preferred shares via US unit

Hanwha Solutions said Thursday it has issued 300 billion won ($195 million) in redeemable convertible preferred shares through its US engineering, procurement and construction subsidiary in the Qcells division.

The proceeds will be used to fill a funding gap created by a reduction in its rights offering and to strengthen the company's financial structure through capital expansion. Hanwha Solutions had earlier cut the size of the rights offering from 2.4 trillion won to 1.7 trillion won to protect shareholder value and ease its financing burden.

RCPS is a type of share that grants holders both a redemption right — allowing them to demand repayment of their investment at maturity — and a conversion right to convert preferred shares into common shares. It is one of several equity-based financing instruments used by companies. Depending on applicable conditions, RCPS can be classified as equity on the balance sheet, which is expected to bolster the company's equity base and improve its financial structure.

The Qcells EPC entity issuing the RCPS directly carries out solar power plant and energy storage system project EPC work in the United States. In 2024, it signed a module supply and EPC contract with Microsoft.

Hanwha Solutions also recently monetized an additional $220.3 million in Advanced Manufacturing Production Credits — comprising $120.3 million for 2025 and $100 million for 2026. The move allowed the company to convert the full $373.7 million in AMPC credits received in 2025 into cash ahead of schedule, securing liquidity. The company plans to maintain stable cash flow through continued AMPC monetization.

Hanwha Solutions aims to raise 700 billion won to cover the shortfall created by the scaled-back rights offering through a rigorous self-rescue plan. Starting with the 300 billion won RCPS issuance, the company plans to raise an additional 400 billion won through the monetization of investment assets and the sale of a US venture investment fund.

"We will swiftly complete the 700 billion won self-rescue plan and then focus on securing a sustainable growth foundation and strengthening our future competitiveness," Lee Jae-bin, chief financial officer of Hanwha Solutions, said. "We will work to ensure the market properly values the company and do our utmost to enhance shareholder value."