Update on Suniva, Inc - Tariffs to be Implemented

RNS Number : 6406C

SQN Asset Finance Income Fund Ltd

23 January 2018

 

23 January 2018

SQN Asset Finance Income Fund Limited

(the "Company" or "SQN")

Update on Suniva, Inc. - Tariffs to be Implemented

SQN, the leading diversified equipment leasing fund listed in the UK, is pleased to announce that last night, the White House announced protective measures aimed to ensure the long-term viability of the US solar cell manufacturing industry. This action, which closed the loopholes in the recommendations made by the International Trade Commission (ITC), is intended to restore a fair and competitive market and recognizes the vital function enterprises like Suniva contribute to US energy independence and national security.

Not only is this a positive outcome for Suniva, it is a crucial step toward broader trade discussions which could bring further benefit to the industry and Suniva, specifically.  

The U.S. Trade Representative provided the following statement: "The U.S. Trade Representative will engage in discussions among interested parties that could lead to positive resolution of the separate antidumping and countervailing duty measures currently imposed on Chinese solar products and U.S. polysilicon.  The goal of those discussions must be fair and sustainable trade throughout the whole solar energy value chain, which would benefit U.S. producers, workers, and consumers."

The tariffs which will start at a rate of 30% and decline 5% per year over four years are generally in line with the expectations of Suniva at the onset of the petition. The quota of 2.5Gw per year of imports is an acceptable level given the size of the US market and the current domestic manufacturing capacity.

These tariffs, which will take effect within 15 days, should pave the way for Suniva to be in a position to repay SQN's investment.

Further announcements will be made as details of the implementation become available over the coming weeks.

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For further information please contact:

SQN Capital Management, LLC Jeremiah Silkowski Neil Roberts	01932 575 888
Winterflood Securities Limited	020 3100 0000
Neil Langford Chris Mills
Buchanan Charles Ryland Vicky Hayns Henry Wilson	020 7466 5000

Notes to Editor

The Company invests in equipment lease and asset finance arrangements across a diverse portfolio of assets and industries predominantly in the UK, Northern Europe and US. The Company focuses on business-essential, revenue-producing (or cost saving) equipment and other assets with high in-place value and long economic life relative to the investment term.

The Company's Investment Managers are SQN Capital Management, LLC, a Registered Investment Advisor with the United States Securities and Exchange Commission and its subsidiary, SQN Capital Management (UK) Limited. The principals responsible for managing the portfolio are Jeremiah Silkowski and Neil Roberts.

 

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