Oct. 26 (Bloomberg) -- Datang International Power Generation Co., the biggest Chinese power producer listed in Hong Kong, plans to raise 3 billion yuan ($401 million) selling bonds to repay debt and increase working capital.

Datang Power will use the funds raised from the bond sale to settle 2 billion yuan of bank loans, the company said in a statement to Shanghai's stock exchange today.

Power producers in China, the world's second-biggest energy consumer, are expanding to supply an economy that grew 11.5 percent in the third quarter, the fastest pace in 12 years. China's energy demand will rise about 4 percent annually through 2010, the government forecast April 10.

Datang Power yesterday reported a profit of 848 million yuan in the third quarter of this year and net income in the first nine months was 2.7 billion yuan.

The company produced 86.6 million megawatt-hours of electricity in the first nine months of this year, an increase of 32 percent from a year earlier, the company said Oct. 15. On- grid power generation rose 32 percent to 81.54 million megawatt- hours from a year earlier, it said.

To contact the reporter on this story: Jiang Jianguo in Shanghai at jjiang@bloomberg.net; Ying Lou in Hong Kong at ylou1@bloomberg.net

Last Updated: October 25, 2007 22:07 EDT