Yangtze Power to buy two generators for 9.8b yuan
China Yangtze Power - the listed flagship of the Three Gorges hydro project builder - will buy two generators from parent firm China Yangtze Three Gorges Project Development for 9.83 billion yuan.
The A-share company would buy the No1 and No4 generators - both 700 megawatts - on March 5, it said in a filing to the Shanghai Stock Exchange.
It will finance the acquisition with 9.5 billion yuan of bank loans from 12 institutions, which have provided five-year loans at a 5.26 per cent interest rate.
The latest acquisition is part of the company's listing promise to gradually buy the 22 generating units that it does not already own from the parent firm by 2015.
With six generating units of the Three Gorges project coming into operation between 2003 and 2009, bringing the total to 32, capacity will be raised from 18,200 MW to 22,400 MW.
The company plans to build four more hydroelectric projects on the Jinsha River, a tributary of the Yangtze River, with a combined capacity of 38,500 MW. These include the 12,600 MW Xiluodu project, work on which was halted pending environmental approval.
