|
Home>News Center>Bizchina | |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
|
Bonds raise power production China Guodian Corporation, one of the country's five largest power generating firms, began to issue 4 billion yuan (US$483 billion) worth of corporate bonds yesterday. The company's bond issue is to fund its construction of three hydro power stations. The issuance partly reflects the nation's push to expedite the development of new power generators, amid a widespread electricity crunch. According to the company's circular published yesterday, Guodian is to sell 2 billion yuan (US$242 million) in 10-year bonds with a fixed rate of 5.3 per cent, and 2 billion yuan (US$242 million) in 15-year bonds with a fixed rate of 5.6 per cent. The 10-year corporate bond investors have the option to sell all or part of their bonds back to issuers on September 22, 2011, while investors in 15-year bonds have the option on September 22, 2014. After the bond issuance, the company will apply for a bond listing on the stock exchange, it said. The proceeds raised from the bond issue will fund the construction of Daduhe Pubugou Hydro Power Station in Southwest China's Sichuan Province, Jilintai Hydro Power Station in Northwest China's Xinjiang Uygur Autonomous Region and the first phase of Nanyahe Hydro Power Station in Sichuan. The three power generation projects will have a total installed capacity of 4.132 million kilowatts and a total investment of 26.228 billion yuan (US$3.17 billion). With an installed capacity of 3.3 million kilowatts and an average annual generation of 14.58 billion kilowatt-hours, the Pubugou project is the largest hydro power station under construction in Sichuan Province. Guodian plans to use 3 billion yuan (US$362 million) of the funds in the Pubugou project, 400 million yuan (US$48.3 million) in the Jilintai project and the remaining 600 million yuan (US$72.5 million) in the Nanyahe project, the company said. Recently, domestic power generation and grid firms have manoeuvred to raise capital from the bond and stock market. China Southern Power Grid raised a total of 3 billion yuan (US$362 million) through bond issuance earlier this month to back the construction of its power transmission projects. China Power International Holding Co plans to launch an initial public offering next month on the Hong Kong Stock Exchange. |
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||
