China Energy Construction (03996) overseas investment project received financing support

Zhitong Finance App News, China Energy Construction (03996) announced that Buzhou Project Company and Kazhou Project Company have signed a financing agreement with a syndicate composed of China Construction Bank Corporation Beijing Railway Professional Branch, Bank of China Co., Ltd. Beijing Branch, Export-Import Bank of China, and China Minsheng Bank Co., Ltd. Shanghai Pilot Free Trade Zone Branch. According to the financing agreement, the Buzhou Project Company and the California Project Company can obtain loan amounts of RMB 1,654 billion and RMB 1,684 billion respectively. The loan period is 15 years. The two project companies pledge all assets, contract rights, bank accounts and equity collateral to the financing bank. At the same time, the shares of the upper Dutch company of the project company are also pledged to the financing bank, and shareholder loan rights held by each shareholder are also transferred to the financing bank. The project is covered by CITIC Insurance export buyer credit insurance.

According to reports, in May 2023, the company decided to invest in the construction of 1GW photovoltaic projects in Uzbekistan, including the 500MW photovoltaic project in Karaubazar in Bukhara region of Uzbekistan (Buzhou project) and the Nisson 500MW photovoltaic project in the Kashkadarya region of Uzbekistan (Kazhou project). The investment amounts are approximately RMB 2,334 billion and RMB 2,377 billion, respectively. In order to promote project construction and development, the company established wholly-owned subsidiaries EnergyChina Dutch Investment B.V. and Oasis Renewable Energy Investmentb.v. (collectively “Dutch Company”), as well as the Buzhou Project Company and the California Project Company in 2023. In total, the Dutch company holds 100% of the shares of the Bozhou Project Company and the California Project Company.