On December 29, 2023, Power China Clean Energy Infrastructure REITs was approved by the CSRC and the Shanghai Stock Exchange, becoming the first public REITs project approved in the hydropower industry in China, the first in Sichuan Province, and the first in ethnic minority areas, and Power China became the 7th central enterprise approved for public REITs projects.
The breakthrough of hydropower station as the base asset for the first time has injected a new asset type into the public offering REITs market in China, and also provides a reference model for the revitalization of clean energy assets, which is of milestone significance.
Through the asset listing platform of public offering REITs, PowerChina can open up the channel of asset revitalization, use the recovered funds to invest in the construction of new projects, and build the investment and financing cycle of "investment construction - operation - effective revitalization", which is to deeply implement the Group's concept of "all assets can be operated". The innovative asset management mode will be combined with invigorating stock assets, optimizing capital structure and reducing leverage and debt.
The basic asset of the public REITs project is the Wuyiqiao Hydropower Station held by the Power Construction Hydropower Development Company. The project is located in Garze Tibetan Autonomous Prefecture, Sichuan Province, with an installed capacity of 137,000 kilowatts.
The approval of the project is the result of joint cooperation between the investment operation platform and the financial platform, and is a successful practice of PowerChina to further promote the management of all-factor assets, continuously improve the operation efficiency and development quality, and realize the combination of industry and finance. Power Construction Fund Company is the lead coordinator of the project, responsible for leading the organization to promote the public REITs project issuance and other related work, power construction hydropower development company is the original rights and operation management of public REITs, responsible for the overall operation and management of public REITs after listing.
