Firm will use debt plus listing proceeds to develop 3,468 MW of new output
China Power International Development plans to more than double its capital expenditure next year and increase it still further in 2006, primarily to fund construction of three power plants.
As the company aims to raise only HK$2.39 billion to $2.96 billion from its upcoming initial public offering, it is planning to derive 80 per cent of the finance for the three projects - which require combined investment of 13.76 billion yuan - through debt.
The future red chip's preliminary listing prospectus says it has budgeted 3.49 billion yuan for expenditure next year and 4.4 billion yuan for 2006 - up from 1.7 billion yuan this year.
More than 90 per cent of the spending would be on the planned power plants, with the remainder set aside for the upgrade of existing plants.
The projects in Anhui, Henan and Hubei provinces have a capacity of 3,468 megawatts, more than China Power's existing 3,010 MW capacity. They are scheduled for completion between 2007 and 2009.