BJENERGY INTL (00686.HK): Plans RMB2.9bn ABS Issue and Sale of Six Subsidiaries

NewTimeSpace News: On 26 October 2026, Beijing Energy International Holding Co., Ltd. (stock code: 686) announced a proposed issue of asset-backed notes (ABN) and the disposal of equity interests in, and debts owed by, its subsidiaries, constituting a very substantial disposal.

The ABN are expected to be registered with the National Association of Financial Market Institutional Investors in November 2026 or later and issued in the China interbank bond market, with an aggregate principal of about RMB2.9 billion, to invest in and securitise the underlying assets held by Jingneng Development. The senior tranche totals RMB2.83 billion (97.5%, expected AAA rating) and the subordinated tranche RMB70 million (2.5%, unrated, no fixed maturity, return of not more than 7% per annum); the notes have an 18-year tenor to 31 December 2044.

Jingneng Development, as seller, will transfer 100% equity interests in six target companies—Shengyang, Tongchuan, Kaineng, Zhuolang, Xundian and the SPV—to the ABN trust, for which China Railway Trust acts as trustee and administrator, for cash considerations of RMB627.73 million, RMB91.36 million, RMB113.15 million, RMB269.94 million, RMB171.17 million and RMB66.33 million respectively, totalling about RMB1,339.69 million. Debt transfer agreements will also transfer shareholder loans owed by the project companies to Jingneng Development.

Upon completion, the target and project companies will cease to be subsidiaries and will be deconsolidated. The Company expects to recognise unaudited gains of about RMB430.61 million, being the difference between the consideration and the unaudited carrying value of the underlying assets of about RMB909.07 million at the valuation date. Proceeds will be used 100% to repay existing debt, mainly bank borrowings maturing within 18 months (principal of about RMB3.44 billion and interest of about RMB69 million at rates of 1.98% to 2.80%). As the highest applicable percentage ratio exceeds 75%, the disposal is a very substantial disposal subject to reporting, announcement, circular and shareholder approval requirements; the circular is expected to be despatched on or before 30 November 2026 and an extraordinary general meeting will be convened.