The definitive agreement provides for the company to acquire the Xiaopengzu project in Yunnan province for a purchase price of US$57M (RMB 390 million), to be financed partially through cash on hand and through the assumption or refinancing of existing non-recourse debt. The acquisition is subject to customary closing conditions, including obtaining governmental approval.

The MOUs provide China Hydroelectric Corp with an exclusive right to pursue its due diligence of two additional operating hydroelectric projects in Yunnan. Subject to the satisfactory completion of its due diligence review, the company expects to enter into definitive agreements to acquire these projects in the near term.

Recently, the company announced it had secured a Loan Framework Agreement from the Bank of China’s Fujian Branch for the acquisition of hydroelectric projects

Under the agreement, the company’s wholly owned finance subsidiary, Fujian Huabang Hydroelectricity Investment Co, can borrow up to an aggregate of CNY3B (US$439M) for the purchase of projects.