SHANGHAI, Jul. 1, 2009 (Xinhua News Agency) -- China's leading solar wafer producer SunTech Power Holdings Co., Ltd. (NYSE:STP) (STP.NYSE) announced Tuesday it has signed a 50 million US dollar convertible loan agreement with International Finance Corporation (IFC).

The convertible loan with a term of seven years has a fixed rate coupon of five percent. When the loan is due, IFC has the right to transfer it into Suntech's American depository share (ADS) at price of 18 US dollars per share.

The loan will be mainly used for the research and development of high efficiency Pluto technology, a technology for improving the power output of crystalline silicon solar cells.

"These additional funds will strengthen Suntech's financial position and support our transition to the high efficiency Pluto technology as we progress towards out goal of providing grid parity solar solutions," said Dr. Zhengrong Shi, Suntech's chairman and CEO.

Suntech is predicted to meet all the pre-requisites of the agreement to obtain the loan.