Huadian Power to Raise 3.5 Bln Yuan via Share Placement

飞雪寒冰

Huadian Power International Corp (SSE: 600027;HKSE:1071), one of China’s top five power producers, said it plans to raise up to 3.5 billion yuan by share placement to fund several power projects.



In a statement filed with the Shanghai Stock Exchange on April 9, the company said it will offer up to 750 million A-shares to no more than 10 investors, including parent China Huadian Corp.



Huadian Power posted a net loss of 2.6 billion yuan in 2008 as surging coal prices squeezed profits. The company aims to expand into wind power and hydropower operations.



The new shares will be issued at no less than 90 percent of the company’s average price in the last 20 trading days before they are priced, it said.



Proceeds raised will be used to invest in two thermal power projects in northwestern China’s Ningxia autonomous region, central China’s Henan province, two wind farms in Inner Mongolia and Hebei province in the north as well as a hydropower station in southwestern China’s Sichuan province.



The share issue is pending approval from regulators and shareholders, it noted.



On March 25, 2008, the company’s board of directors approved a plan to issue new shares equivalent to not more than 20 percent of its share capital.