requestId:6861491e7504b1.50611976.
Time goes back 26 years ago.
In 1993, under the bath of transformation and opening up the spring wind, China’s economy advanced to a period of rapid development. With this, the national electricity load increased significantly, and the power elasticity coefficient (the ratio of the growth rate of power consumption and the growth rate of domestic economic) once reached 1.5 meter. There is a lack of electricity for surface use in the country, and there is a problem when pulling and limiting electricity. At that time, the power industry departments and enterprises could say “pressure mountain”.
(Source: WeChat public number “Energy Magazine” ID: energymagazine Author: Xie Zhengjun)
A meeting request for the eight nationals, “in five years, the goal of adding 65 million kilowatts of new power installations has been achieved.” The main reason for analyzing the lack of electricity in the country at that time was the lack of power construction funds, and most power-generating companies were unable to cook without rice. To this end, the Ministry of Electric Power Industry clearly stated that “we must rely on the transformation and opening up new investment mechanisms, and use multi-channel measures to build power funds.” Solving project construction funds became the top priority of national power departments and enterprises at that time.
Be the “first person to eat crabs”
In January 1993, Longyuan Power Technology Development Company (the predecessor of Longyuan Power Group Co., Ltd.) was announced to be established at the Fishing Platform, Beijing. Current leaders including Huang Yi-Yi, Deputy Minister Shi Dao, and Yue Youmei, Chairman of the China Power Enterprises Association Zhang Fengxiang and other leaders attended the founding meeting. In January 1993, Huang Yi-Ying, Shi Da-Ling, Lu Youmei, Zhang Fengxiang and other comrades attended the establishment of the Longyuan Power Technology Development Company. Two months after the establishment of the “Longyuan Power Technology Development Company”, the National People’s Congress passed the Institutional Renovation Plan of the National Institute of Technology, and the Ministry of Power Resources withdrew its sales, and the Ministry of Power Industry resumed its establishment after ten years. (In February 1982, we graduated from the Ministry of Electric Power Industry and the Science and Technology Committee of the Ministry of Electric Power Industry. In 1983, the Ministry of Electric Power and the Ministry of Water Resources merged to establish the Ministry of Water Resources and Electric Power. In 1988, the Ministry of Power was established. The Ministry of Power Administration’s governance capacity was promoted to the Ministry of Power, and the industry governance capacity was undertaken by the newly established China Power Enterprises Association.
The staff of Longyuan Company are composed of departmental diversion personnel of the Department of Power and Electric Power. The main purpose of its business is to promote the development of the power industry, add power projects to the expansion and new construction, and undertake the technical reform of the power industry. When Longyuan Company was established, it only had 85 million people invited by friends at the last moment. Although some electricity technology transformation funds were added later, the registered funds for RMB were also lacking 300 million yuan.
The lack of funds is a year-on-year problem that the new company was first launched. How to solve this difficult problem? How to complete the tasks under the power industry? Longyuan’s leadership team, with Peng Gaoyan as the general manager, turned its strategic vision to the international capital market. This was a very goodA big strategy choice.
According to the national foreign exchange scale and policy restrictions, at that time, there were only a few enterprises such as Huan Energy, which had foreign exchange indicators agreed to by the National Political Consultative Conference, and other enterprises had almost no channels for foreign exchange introduction.
Some companies are in contact with foreign-funded frequency and explore various ways to apply foreign-funded funds, but often make too high profits through intermediary financing or foreign direct investment requests, resulting in excessive investment capital failure.
Longyuan Company proposed to the Ministry of Power Industry to provide overseas financing for construction of domestic thermoelectric factories, the head of the Ministry of Power Industry clearly stated that it is necessary to explore low-cost financing methods suitable for the country, and to open up a new channel for the foreign investment application of China’s power industry as soon as possible.
At that time, the sources of power enterprises’ application of foreign capital were the World Bank loans, Asian Bank loans, japan (Japan) overseas cooperation funds, foreign bureau loans, international business loans, etc. Although these traditional methods are relatively favorable in terms of loan interest rates, they all require the guarantee by the authorities. In fact, the state bears unlimited responsibility, and at the same time, many additional conditions, such as purchasing loan national equipment. In addition, we have also tried two methods, BOT and BOO, but there are disadvantages of cooperating with each other (usually 20 years of distribution), foreign ownership rights, and the actual return rate is higher than that of ordinary loan interest rates (usually 20% distribution).
When Longyuan people were exploring their hard work to introduce foreign investment forms, business representatives from the world’s famous investment bank Morgan Stanley came to Longyuan.
After several transportations, Longyuan decided to hire Morgan Stanley as Longyuan’s domestic financing consultant, and conducted sufficient communication on financing scale, financing methods and financing progress.
A month later, the form of financing in Longyuan Sea has been determined. This form is that Longyuan first set up a full-investment subsidiary in the overseas market as a financing window, and then directly issue bonds in the international capital market through the overseas subsidiary, and issue bond funds to invest in domestic power station projects, using power station revenue to compensate for the principal and profit of the bond.
This form has three advantages: First, it is completely related to corporate behavior, bears risks with the project itself, and has no other responsibility; second, it is directly introduced into foreign capital market funds to prevent intermediary periods, foreign investors do not occupy the share capital, and China owns property rights; third, the interest rate of debt repayment interest rate is 10%, which is far lower than the investment return rate of ordinary foreign debts (generally between 15% and 20%.
At that time, the loan interest rate of RMB also exceeded 10%. On October 15, 1993, the then Minister of Electric Power Industry met with Mr. John McKelly, President of Morgan Stanley. Minister Shi Dazhi clearly stated that he would fully support Longyuan Company’s domestic bonds. Later, Longyuan Company and Morgan Stanley signed a cooperation agreement, and the Xiongya Inland Debt Mission was officially launched.
In October 1993, Shida met with President Morgan Stanley and witnessed the cooperation between the Longyuan Group and Morgan Stanley signed a letter to cooperate with the agreement
1In December 993, the Longyuan Group signed a preliminary commission agreement with Morgan Stanley Asia. In 1993, Li Erze met with the president of Morgan Stanley, a contractor responsible for Longyuan’s debt. Find investment targets. Determining the direction of foreign investment is a key link to attracting profits from foreign investment debt. When applying external power, you must consider the project price and gain talent. Longyuan has placed the project target in areas with relatively economic development and severe power shortage. After the actual assessment of projects in Jiangsu, Zhejiang, Fujian and other places, the company gradually focused on the expansion of the project in Zhangjiagang Electric Factory in Suzhou City, Jiangsu Province.
Due to the overwhelming economic trend at that time, the country implemented a macro-control policy. The power project in the institute faced a serious shortage of funds. The agency hoped that central enterprises and provincial enterprises would invest in stocks. At that time, the Jiangxi Port Electric Factory in Wuxi District, Jiangxi District, has agreed to run an external application power project by the province, and the funds in the office have been implemented.
Sun Fukang, the deputy mayor of Jiangyin Municipal Bureau, came to the Electric Power Industry Department and expressed his intention to apply to the application of Longyuan Company to build Xiagang Electric Factory on behalf of the overseas debt project. The Minister of Shi Daquan introduced the Deputy Mayor of Sun Fukang and Xiagang Project to Longyuan Company Peng Gaoyan.
According to the forecast of Jiangsu Electric Power Company, according to the “Eighth Five-Year Plan”, the construction scale of Jiangsu Electric Power Decks in Jiangsu was unlimited, and Jiangsu Province will face a serious electricity use gap in the next few years. Especially in the two years of 1996 and 1997, there were almost no new large-scale investments in Jiangsu Province.
The Longyuan team has made sufficient evidence for the two projects of Zhangjiagang Electric and Xiagang Electric. It has reversed the calculations for m TC:
