Huge loans granted for China Yangtze Power
( 2003-11-16 15:33) (People's Daily)
Ten domestic financial institutions agreed Saturday to grant combined loans
amounting to 3.35 billion yuan (about US$404 million) to the China Yangtze Power
Co., Ltd, the sole manager of electric power production in central China's
gigantic Three Gorges project.
Yangtze Power will use the money to purchase the first batch offour power
generating units that have become operational in accordance with an agreement
signed with the banking syndicate in Beijing.
The China Construction Bank (CCB), one of the country's "big four"
state-owned commercial banks, will lead the syndicate to offer as much as two
billion yuan. Other leading loan providers include the Three Gorges Financing
Co., Ltd, the Industrial and Commercial Bank of China and the China Minsheng
Banking Group.
A State Council plan has approved Yangtze Power to gradually purchase the
power generation assets in the gigantic Three Gorges waster conservancy project,
and the majority of the funds needed will be borrowed and come from the
company's profits, with a smaller proportion being money collected from capital
markets.
According to authorities of the State Electricity Regulatory Commission
attending Saturday's signing ceremony, the move was a fine example for
cooperation between banks and enterprises and among banks, which was of great
significance for the electric power industries to broaden money-raising channels
and the financial industries to expand services for clients.
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