CSRC approves Datang Power's private placement plan

Datang International Power Generation Co, China's second-largest publicly-traded electricity producer, announced that it has secured approval from the China Securities Regulatory Commission, the country's securities watchdog, for its A-share private placement plan, sources reported.

In a statement filed with the Shanghai Stock Exchange, the power producer did not indicate the timetable for the private placement plan.

In May, Datang Power announced that it plans to issue up to 1 billion A shares to up to ten qualified investors, including its parent China Datang Corp, at more than RMB 6.81 apiece, thus to raise up to RMB 8 billion.

The power producer will use RMB 2 billion of the proceeds from the share sale to finance a coal-to-gas project in Inner Mongolia, RMB 1.8 billion to fund a second coal-to-gas project in Fuxin, Liaoning Province, and RMB 1.2 billion to fund a nuclear power project in Ningde, Fujian Province, according to an earlier report from China Knowledge.

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