Bank of China to Buy $30 Million Stake in Huaneng Unit

Bank of China Ltd. will buy a $30 million stake in the initial public offering of Huaneng Renewables Corp., the clean energy unit of China’s biggest electricity producer.

The planned purchase was detailed in the prospectus for the sale, released in Hong Kong today. Intended investments by Temasek Holdings Pte and State Grid Corp. of China had already been disclosed by people with knowledge of the transaction.

China Huaneng Group Corp. is seeking as much as $1.3 billion from Huaneng Renewables’s IPO. The sale will add to a record $45.4 billion raised via initial public offerings in Hong Kong this year, according to Bloomberg data excluding overallotment shares.

On offer are 2.49 billion shares at HK$2.98 to HK$3.98 apiece, the prospectus shows. The company plans to set the price on Dec. 10 and start trading on Dec. 16 using the stock exchange ticker, or code, of 958.

Temasek, Singapore’s state investment company, will take a $50 million stake, while State Grid will buy $60 million of shares, the prospectus shows. China Chengtong Holdings Group Co. will invest $10 million.

Morgan Stanley, China International Capital Corp., Goldman Sachs Group Inc. and Macquarie Group Ltd. are managing the IPO.

China, the world’s biggest polluter, wants at least 15 percent of its energy to come from renewable sources by 2020. China Huaneng Group plans to have 20,000 megawatts of wind-power capacity by the end of the decade, or about 10 percent of its estimated generating capacity, according to a company statement on May 25.

To contact the reporters on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net John Duce in Hong Kong at Jduce1@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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