Huadian International Power Co., Ltd. (01071) subsidiary plans to establish a limited partnership with Huadian Jintai to invest in Hubei Huadian Jiangling Power Generation Co., Ltd.

According to the Zhitong Finance App, Huadian International Electric Power Co., Ltd. (01071) announced that the company plans to register with the China Interbank Market Dealers Association to issue RMB asset-backed notes. The total amount of RMB asset-backed notes to be issued by the company this time will not exceed RMB 3.2 billion, and the period is expected to be 23 years. Under the asset support notes, Hubei Company, Energy Marketing Company and Huadian Jintai plan to sign a partnership agreement to establish a limited partnership. According to this, Hubei Company and Energy Marketing Company will invest RMB 794 million and RMB 101 million respectively in the limited partnership; the limited partnership, Hubei Company, and Jiangling Company will each sign a “Trust Contract” with Huaxin Trust. Based on this, Huaxin Trust will establish a service trust and provide fiduciary services to receive a total of approximately RMB 16 million in trust service rewards.

Among them, Energy Marketing Company established a partnership as a general partner, Huadian Jintai as a Class A limited partner, and Hubei Company as a Class B limited partner. The registered capital of the partnership is approximately RMB 3,975 billion, of which the energy marketing company has pledged RMB 0.1 billion, Huadian Hubei has pledged an investment of about RMB 794 million to hold about 20% of the limited partnership share, and Huadian Jintai has pledged an investment of approximately RMB 3.180 billion to hold about 80% of the limited partnership share.

The initial investment target of the partnership was Hubei Huadian Jiangling Power Generation Co., Ltd. (“Project Company”). The project company owns and operates the “Phase I 2*660MW Ultra Supercritical Coal-fired Generator Project” (hereinafter referred to as the “Target Project”). The partnership company transferred 99% of the project company's shares by signing an agreement relating to the share transfer; at the same time, the partnership made a trust loan to the project company through a service trust (“trust loan” for short) to complete the first round of investment.

As of the date of this announcement, Hubei Company is a holding subsidiary of the Company. The Company holds 82.5627% of Hubei Company's shares. The Hubei company is mainly engaged in the production and supply of electricity and heat. The energy marketing company is a wholly-owned subsidiary of the Hubei company. The company controls the energy sales company indirectly through the Hubei company. Energy sales companies are mainly engaged in the purchase and sale of electric energy.

Huadian Jintai is a subsidiary of China Huadian Control. On the date of this announcement, Huaneng Group indirectly held 49% of Huadian Jintai's shares through its wholly-owned subsidiary Huadian Asset Management, and Huadian Asset Management was Huadian Jintai's largest shareholder. China Huadian is a state-owned central enterprise that mainly operates the electric power industry. It is supervised by the State Council's State-owned Assets Supervision and Administration Commission. On the date of this announcement, China Huadian directly held 45.17% of the company's interests, and China Huadian was the controlling shareholder of the company.