Liaoning Province-based Chinese steelmaker Bengang Steel Plates Co., Ltd. (Bengang Steel Plates) has announced that it plans to set up a wholly-owned subsidiary, contributing its CCPP power assets and other physical assets as capital.
Bengang Steel Plates Co., Ltd. has announced that, in order to revitalize existing assets, broaden equity financing channels, and optimize its asset-liability structure, the company plans to issue holding-type industrial infrastructure assets on the Shenzhen Stock Exchange.
In accordance with the transaction structure requirements for holding-type industrial infrastructure assets-backed securities, the underlying assets shall be held by a project company, and the asset-backed special plan shall indirectly hold the underlying assets by holding 100 percent equity in the project company. Accordingly, the company plans to establish a wholly-owned subsidiary using physical assets such as its CCPP power generation assets as a capital contribution, and to transfer the CCPP power generation assets into the project company.
CCPP (Combined Cycle Power Plant) generation unit assets primarily refer to complete sets of equipment and supporting facilities that use byproduct gases such as blast furnace gas and coke oven gas, or natural gas, to generate electricity through a combined cycle of gas turbines and steam turbines. In the steel industry, such assets are commonly used for comprehensive resource utilization and energy conservation and emission reduction.
