Huaneng Power Advances Coal-Fired Power REIT Spin-Off on Shanghai Market

Huaneng Power International ( (HK:0902) ) just unveiled an announcement.

Huaneng Power International has advanced a proposed spin-off involving its Huaneng Coal-fired Power REIT, as its board reviewed progress on the application for a public offering and listing of the infrastructure real estate investment trust on the Shanghai Stock Exchange. The board also approved resolutions addressing connected transactions related to the REIT, signaling continued regulatory and transaction structuring work before launch.

Under the planned structure, Huaneng Qingdao Thermal Power will transfer a coal-fired power project into a wholly owned project company, then sell 100% of that company’s equity to an asset-backed special scheme that is fully owned by a publicly offered infrastructure securities fund. Qingdao Thermal Power or related parties under common control will subscribe for 51% of the REIT via strategic placement, making the REIT a non-wholly owned subsidiary consolidated into Huaneng Power’s financial statements, with project cash flows ultimately distributed to the ABS scheme, the public fund, and REIT investors.

The most recent analyst rating on (HK:0902) stock is a Sell with a HK$4.75 price target. To see the full list of analyst forecasts on Huaneng Power International stock, see the HK:0902 Stock Forecast page.

More about Huaneng Power International

Huaneng Power International, Inc. is a major Chinese power generation company with a focus on coal-fired and thermal power assets. Through subsidiaries such as Huaneng Qingdao Thermal Power Co., Ltd., the company develops, owns, and operates power projects in China, and actively uses capital market structures to manage and monetize infrastructure assets.

Average Trading Volume: 38,118,124

Technical Sentiment Signal: Buy

Current Market Cap: HK$117.9B

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