Sunpower increases letter of credit capacity

Solar-system supplier Sunpower has signed a three-year letter of credit facility that initially provides for a maximum issuance of $350m (£226m) in letters of credit and may be increased to a maximum of $400m.

It will replace the company’s existing $250m letter of credit facility and will be underwritten by a syndicate of banks that includes Deutsche Bank, Bank of America Merrill Lynch, Citi, Credit Suisse and Barclays Capital.

The arrangement is said to have reduced the company’s cash-collateral requirement from 100 to 50 per cent.