BJ ENERGY INTL (00686) has sold a series of underlying assets for the issuance of asset-backed commercial paper.

BJ ENERGY INTL (00686) announced that on November 20, 2024 (after trading hours), its subsidiary, Beijing Energy Development, entered into a trust agreement with CINDY International Trust. According to the agreement, Beijing Energy Development has conditionally agreed to entrust its underlying assets to CINDY International Trust, and CINDY International Trust has conditionally agreed to act as the trustee and manager of the trust for the benefit of the holders of asset-backed commercial paper. The underlying assets include all rights, interests, benefits, and revenues relating to subsidies receivable (current and future, existing and contingent); all due or soon-to-be-due receivables related to subsidies; all proceeds from the transfer, sale, auction, disposal or other disposition of subsidies receivable; the rights to request, sue, recover, or accept all payable amounts relating to subsidies receivable; and all benefits from subsidies receivable, as well as all rights and legal remedies related to the collection of subsidies receivable. The subsidies receivable include expected renewable energy government subsidies to be collected by 22 photovoltaic and wind power project companies of the group located in various provinces and autonomous regions of China (with a combined installed capacity of 1084.30 MW as of the initial reference date) by September 2027 or thereabout. The announcement stated that the issuance of asset-backed commercial paper would diversify the group's financing channels, obtain low-cost funds for improving the group's financing structure, operations, and investments. It would also help the group reduce accounts receivable balances and optimize the group's debt asset ratio. The directors believe that after the sale of the asset-backed commercial paper, the overall turnover of the group's assets will be accelerated, leading to an increase in total revenue. Additionally, the proposed transfer of underlying assets will expedite the collection of the group's accounts receivable.