Datang seeks funding
A US$300 million convertible bond issue by H share Beijing Datang Power Generation is imminent, according to informed sources.
The prevailing low interest rate environment, Beijing Datang's highest share price in four years and impending regulatory approval favoured the issue, the sources said.
The bond, to be converted into H shares and listed on the Luxembourg Stock Exchange, will provide the company with a cheaper funding alternative.
Beijing Datang, one of China's largest independent power producers, needs the bond proceeds to finance equipment imports and refinance short-term debts.
Since the company revealed the bond plan in March, it has obtained approval from most parties, such as shareholders, the State Development and Planning Commission and the China Securities and Regulatory Commission.
A key barrier remaining is approval from the foreign exchange regulator, the State Administration of Foreign Exchange.
Beijing Datang could not be reached for comment yesterday.