Huadian Fuxin Energy, the clean energy unit of state-owned China Huadian Group, plans to raise 6 billion yuan (HK$7.32 billion) through a Hong Kong stock market listing to develop new projects, buy wind power equipment, retire debt and boost working capital.
Huadian Fuxin was set up to take over the solar, wind, nuclear and heat-power co-generation projects of Huadian, as well as some coal-fired and hydropower plants in Fujian province. Huadian is one of five central government-owned national power generation groups.
The company plans to spend up to 2.4 billion yuan on clean energy projects, a similar amount on wind power equipment procurement, 1.2 billion yuan to retire debt and 600 million yuan to boost liquidity, according to a report it submitted to the Ministry of Environmental Protection.
The ministry said the Fujian, Heilongjiang and Hubei branches of the environmental watchdog had agreed to approve the firm's environmental assessment for its listing. They examined the track record of seven of its projects that are pollution-prone, which are either coal-fired power or biomass power plants.
All equity fund-raising deals require the ministry's approval. The issuers are required to submit a detailed report demonstrating their pollution-prone facilities' environmental compliance.
Based on details from a list of subsidiaries in the report, Huadian Fuxin has 2,550 megawatts of coal-fired capacity and 880MW of hydro capacity either in operation or under construction, all in Fujian.