Huaneng International to launch infrastructure REIT backed by power assets

Huaneng International (SSE:600011) announced its plan to issue infrastructure Real Estate Investment Trusts (REITs) using assets held by its Qingdao Thermal Power subsidiary. As part of the process, Qingdao Thermal Power will transfer its stake in the project to a special purpose vehicle managed by Changcheng Securities Asset Management. Changcheng Fund Management will act as the fund manager. Qingdao Thermal Power, or related entities, may participate as strategic investors. The transactions involve related-party elements and are subject to regulatory approvals from bodies like the Qingdao Development and Reform Commission, Shanghai Stock Exchange, and the China Securities Regulatory Commission. The underlying assets include two 350MW combined heat and power units and related facilities that began operations at the end of 2022, with a planned REIT lifespan of 27 years. Huaneng's ultimate REIT structure will be determined based on regulatory guidelines.