China power plant developer Huadian Power International Corp. has launched a share issue of 750 million new A shares to finance development of new power assets including the 920-MW Luding hydroelectric project in China’s Sichuan Province.
Huadian Power said it plans to raise up to 3.5 billion renminbi (US$512 million). Subscription to the issue will be limited to 10 investors, including its controlling shareholder China Huadian, one of the country’s five major power generation groups.
Huadian Power set a minimum subscription price of 4.50 renminbi. Apart from China Huadian there are no agreements with any other investors.
Huadian Power said it would allot 1 billion renminbi (US$146.3 million) of the revenue to subsidiary Sichuan Huadian Luding Hydropower Co. Ltd. for the Luding hydropower project being built on the Dadu River. The project is to have four 230-MW generating units.
Last month, China’s National Development and Reform Commission approved construction of Luding as part of an effort to increase the amount of renewable energy in the nation’s energy mix. (HNN 3/17/09)