Guangdong Electric subsidiary to issue green REIT-like product for new energy

Guangdong Electric Power Development Co., Ltd. announced that its subsidiary, Guangdong Wind Power Company, intends to issue a green asset-backed special program (REIT-like) for new energy infrastructure investment. This initiative aims to revitalize existing assets, introduce equity development funds, and improve the capital structure of Guangdong Wind Power Company. The program will involve a shelf registration for a total scale not exceeding RMB 3 billion, to be issued in no more than three tranches.

The first tranche of the special program is expected to have an issuance size of approximately RMB 1.721 billion. Of this, RMB 1.72 billion in senior tranches will be subscribed by qualified investors, while a RMB 1 million junior tranche, without credit rating, will be held by Guangdong Wind Power Company. The underlying assets for the first tranche include 440 MW from photovoltaic projects and 349.5 MW from other wind and photovoltaic projects, totaling 789.5 MW. The issuance is expected to take place on the Shenzhen Stock Exchange.

The issuance will enable Guangdong Electric Power Development to maintain its asset levels on a consolidated basis, optimize its capital structure, and save on interest expenses, thereby reducing its asset-liability ratio. This move is expected to enhance the company's financial stability and sustainable development without adversely affecting its normal operations or the interests of its shareholders.