Xinte Energy unit to receive RMB500m injection

Xinte Energy Co., Ltd. (HKEX: 1799) announced a discloseable transaction involving its subsidiary, Fengsheng Power Generation, where ICBC Financial will inject RMB500 million. The capital injection will result in ICBC Financial holding a 39.05% equity interest in Fengsheng Power Generation, while Sunoasis, another subsidiary of Xinte Energy, will hold 60.95%, reducing Xinte Energy’s indirect equity stake from 91.26% to 55.62%. The funds, RMB469,652,000 of which will be credited to the registered capital of Fengsheng Power Generation, are earmarked for repayment of existing debts, improving gearing structure and boosting the financing capacity for new projects. The deal is subject to customary conditions precedent. Xinte Energy believes the introduction of ICBC Financial will bolster Fengsheng Power Generation's competitiveness and support expansion in the new energy sector.