Securities code: 601669 stock abbreviation: Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) Announcement No.: pro 2022-013
Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669)
For Sinohydro Bureau 8 Co., Ltd
Announcement on providing balance supplement for asset securitization business
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
Party accepting the difference supplement: Founder Securities Co.Ltd(601901) - special plan for asset support of phase 1 PPP project of Sinohydro Bureau 8 (hereinafter referred to as "special plan").
The amount of this difference supplement: the issuance scale of the special plan is RMB 1.05 billion; The company shall make up the difference between the funds in the special plan account that are insufficient to pay the relevant taxes and expenses payable and the sum of the expected income and principal of priority asset-backed securities.
Up to now, the company and its wholly-owned and holding subsidiaries have no overdue external guarantee.
1、 Overview
Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) (hereinafter referred to as "the company") held the 46th meeting of the third board of directors and the first extraordinary general meeting of shareholders in 2021 on October 9, 2021 and October 26, 2021 respectively. The board of directors and the general meeting of shareholders of the company deliberated and adopted the proposal on adjusting the issuance plan of asset securitization products in Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) 2021, Agree to increase the quota of no more than RMB 16 billion beyond the quota of RMB 23 billion approved by the 2020 annual general meeting to issue asset securitization products by stages; It is agreed to issue a letter of commitment to the manager for the asset securitization products issued by the company and its subsidiaries within the total amount of no more than 16 billion Yuan approved by the 2020 annual general meeting of shareholders, and provide balance supplement, liquidity support and other credit enhancement for the asset securitization products in accordance with the provisions of the letter of commitment, The specific content of credit enhancement shall be subject to the letter of commitment for credit enhancement actually issued, and the chairman of the company shall be authorized to deal with specific issues and credit enhancement. The authorization period shall be from the date when the above proposal is approved by the general meeting of shareholders of the company to the date when the annual general meeting of shareholders of the company in 2021 is held.
The chairman of the company made a decision on November 10, 2021 and agreed to provide credit enhancement for the special plan initiated by the company's holding subsidiary China water resources and hydropower eighth Engineering Bureau Co., Ltd. as the original stakeholder, That is, it is agreed that the company shall make up the difference between the funds in the special plan account that are insufficient to pay the relevant taxes and expenses payable and the sum of the expected income and principal of priority asset-backed securities, and the specific contents of making up the difference shall be subject to the transaction documents finally signed by the company; With regard to the credit enhancement matters involved in the subsequent issuance under the special plan for shelf storage with a total issuance scale of no more than 2 billion yuan, the company will perform the corresponding decision-making procedures in accordance with the internal system.
After obtaining the letter of no objection to the listing and transfer of asset-backed securities of the special plan for asset support of Founder Securities Co.Ltd(601901) - phase 1-4 PPP project of No. 8 Hydropower Bureau (Shh [2021] No. 1925) issued by Shanghai Stock Exchange, the special plan was issued in Shanghai Stock Exchange. The issuance scale of the special plan is RMB 1.05 billion, which is divided into priority asset-backed securities and secondary asset-backed securities. Priority asset-backed securities are further divided into priority A1 asset-backed securities, priority A2 asset-backed securities, priority A3 asset-backed securities and priority A4 asset-backed securities. The issuance scale of priority A1 asset-backed securities, priority A2 asset-backed securities, priority A3 asset-backed securities and priority A4 asset-backed securities are RMB 184 million, RMB 168 million, RMB 160 million and RMB 488 million respectively, and the expected maturity dates are November 28, 2022, November 28, 2023, November 28, 2024 and November 28, 2028 respectively; The issuance scale of subordinated asset-backed securities is RMB 50 million, and the expected maturity date is November 28, 2028.
2、 Basic information of special plan
The full name of the special plan for shelf storage is " Founder Securities Co.Ltd(601901) - special plan for asset support of PPP project of phase 1-4 of Sinohydro Bureau 8". The plan manager is Founder Securities Co.Ltd(601901) , the original owner is Sinohydro Bureau 8 Co., Ltd., and the basic assets are the income right of PPP project enjoyed by the original owner in accordance with the PPP project contract and the transfer agreement, The total issuance scale of the special shelf storage plan shall not exceed RMB 2 billion, the issuance scale of the special plan shall be RMB 1.05 billion, the period of the special plan shall not exceed 7 years (including the number), the issuance interest rate shall be determined according to the market environment at the time of issuance, and the issuance object shall be qualified investors and no more than 200 people, The way of credit enhancement is that the company issues the difference payment commitment letter to the plan manager and undertakes the difference supplement, priority and sub stratification of asset-backed securities and other necessary credit enhancement measures.
3、 Main contents of the commitment letter of differential payment
The company issued the commitment letter for difference payment of Founder Securities Co.Ltd(601901) - phase 1 PPP project asset support special plan of Sinohydro Bureau 8 Co., Ltd. to the plan manager Founder Securities Co.Ltd(601901) of the special plan, the main contents of which are as follows:
1) Make up the difference: the company undertakes the obligation to make up the difference between the sum of the expected income and principal of priority asset-backed securities when the funds in the special plan account are insufficient to pay the taxes and expenses of the special plan.
2) Commitment period for making up the difference: the commitment letter shall take effect from the signing of the company and terminate after all expected returns and outstanding principal balance of priority asset-backed securities under the special plan are paid off.
4、 Opinions of the board of directors and persons authorized by the board of directors
According to the resolution of the 46th meeting of the third board of directors of the company and the decision of the chairman made on November 10, 2021, Sinohydro Bureau 8 Co., Ltd. established a special plan to carry out asset securitization business for financing, which can revitalize stock assets, broaden financing channels, improve fund use efficiency and optimize asset structure; The income right of PPP project enjoyed by Sinohydro Bureau 8 Co., Ltd. in accordance with the PPP project contract and the transfer agreement as the basic asset of the special plan has stable income and low overall risk, and the possibility of making up the difference actually borne by the company is small; In addition, Sinohydro Bureau 8 Co., Ltd. has a stable operation and good credit status. The relevant credit enhancement measures provided by the company can effectively reduce the financing cost, which is in line with the interests of the company and all shareholders. There is no damage to the interests of minority shareholders. It is agreed that the company will provide balance supplement for the special plan.
5、 Accumulated external guarantees and overdue guarantees
As of June 30, 2021, the guarantee balance of the company's headquarters and its wholly-owned and holding subsidiaries to non affiliated third parties was RMB 490 million, accounting for 0.42% of the company's audited net assets as of December 31, 2020; The external guarantee balance of the company and its wholly-owned and holding subsidiaries was 97.054 billion yuan, accounting for 82.23% of the audited net assets of the company as of December 31, 2020; There is no overdue guarantee.
6、 Documents for future reference
1. Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) resolution of the 46th meeting of the third board of directors.
2. Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) resolution of the first extraordinary general meeting of shareholders in 2021. 3. Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) decided by the chairman. It is hereby announced.
Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) board of directors January 19, 2002
