(Yicai Global) Aug. 6 -- China National Nuclear Power has been given the go ahead to raise CNY7.6 billion (USD1.1 billion) through a private placement of shares by the country’s state-owned enterprises supervisor to fund the building of its Zhangzhou nuclear power plant.

The State-owned Assets Supervision and Administration Commission of the State Council has greenlighted the sale of 4.67 billion shares to up to 35 investors to finance a nuclear power plant currently under construction in Zhangzhou, southeastern Fujian province, the nuclear power generation firm announced yesterday. The move still needs approval from the China Securities Regulatory Commission.

The Zhangzhou plant, costing an estimated CNY40 billion (USD5.8 billion), is a commercial nuclear project that uses China’s domestically developed third-generation nuclear energy technology known as Hualong One. Construction on its two 1,000 megawatt nuclear reactors got underway in October last year. So far, Beijing-based CNNP has raised CNY6.9 billion towards it, it said.

CNY5.4 billion (USD777.5 million) of the new funds raised will go towards the Zhangzhou plant and the rest will be used to replenish its working capital, it said.

The extra finances will also help CNNP reduce its debt-to-assets ratio, which stands at a high 73.9 percent, by about 1.56 percentage points, it added.

The firm posted CNY14.2 billion in net profit last year, up 13.35 percent from a year earlier, and CNY7.1 billion in expenses.

There was no change to CNNP’s stock price [SHA:601985] today. It closed at its opening price of CNY4.38 (USD0.63).

Editor: Kim Taylor