China Hydroelectric Corporation acquires 44MW hydroelectric power project in Yunnan Province

Source: China Hydroelectric Corporation

China Hydroelectric Corporation (NYSE: CHC, CHCWS) an owner, developer and operator of small hydroelectric power projects in the People's Republic of China (PRC), announced that it consummated the previously announced acquisition of 100 percent of the Xiaopengzu hydroelectric power project, totaling 44 megawatts of installed capacity in Yunnan province of the PRC. 

The equity purchase price for the project was US $35 million (RMB 240 million) with a debt assumption of $22 million (RMB 150 million). The Company is in the process of refinancing the existing bank debt and expects to receive an additional $13 million (RMB 90 million) in non-recourse bank debt from the Bank of China Fujian Branch. 

The Company had announced the execution of the definitive agreement for this acquisition on February 16, 2010. This purchase provides for the addition of 44 MW of operating installed capacity, increasing the Company's total installed capacity to 493.4 MW. 

The Company continues to work towards finalizing the acquisition of the Taiyu projects, for which the Company has entered into memoranda of understanding. As announced previously, the Company has made down payments with respect to the Taiyu projects memoranda, which include penalties to the sellers for cancellation. Subject to the satisfactory completion of its due diligence review, the Company expects to enter into definitive agreements to acquire and finance these projects in the near term. 

"We are pleased to consummate the acquisition of the Xiaopengzu project in Yunnan province," said Chairman & CEO John D. Kuhns of China Hydroelectric Corporation. "This acquisition significantly increases our total installed capacity and Yunnan province, where we already own and operate 114 megawatts of capacity, presents an excellent opportunity to expand our asset base in China. Our ability to acquire hydroelectric power projects has accelerated as a result of our January 2010 IPO and our favourable loan framework agreement with the Bank of China's Fujian branch."

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