The Chinese company said that it planned to invest up to RMB1B (US$146M) from the net proceeds for a hydro power project being developed by Sichuan Huadian Luding Hydropower Co Ltd, a wholly-owned subsidiary.
Sichuan Huadian Luding Hydropower is already developing a 920MW (4 x 230MW) project on the Daduhe river in Sichuan province, China.
Each of the energy sector investments from the net proceeds of the fundrasing will be less than in hydro. Also, half as much of the funds raised are to be used for general working capital.
The Chinese power company has received board approval for up to a further 750M “A” shares for subscription by not more than 10 qualified investors, including state-owned China Huadian which has a 50.6% holding in the firm.
The total net proceeds of the new equity placing is almost RMB3.5B (US$512M). The company had not undertaken any equity issue fundraising in the previous 12 months.
