China Longyuan completes USD-374m share placing

Dec 21, 2012 - Wind farm developer and operator China Longyuan Power Group Corp (HKG:0916) today said it had raised around HKD 2.9 billion (USD 374m/EUR 283m) in gross proceeds from a stock sale to fund projects.

The company issued 572.1 million H Shares, the ones listed on the Hong Kong Stock Exchange, at HKD 5.08 apiece. The newly issued shares represent about 17.1% of the total number of H Shares in issue as enlarged by the placing. The fundraising has increased the total number of China Longyuan's issued shares to around 8.04 billion from around 7.46 billion and the number of its H Shares to 3.34 billion from 2.71 billion.

When announcing the placing of December 14, China Longyuan said it planed to use half of the funds for onshore wind power projects in China. Another 20% will go for domestic offshore wind projects, while 15% are to be used for investing in foreign wind and solar power projects. About 10% have been earmarked for replenishing working capital, while 5% are to be spend on solar projects in China.

(HKD 1.0=USD 0.129/EUR 0.098)

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