Beijing Energy International (00686): Beijing Energy Development and Societe Generale International Trust signed a trust agreement

According to Zhitong Finance App, Beijing Energy International (00686) announced that on August 26, 2026, Jingneng Development signed a trust agreement with Societe Generale International Trust. Jingneng Development has conditionally agreed to entrust the underlying assets to Societe Generale International Trust and Societe Generale International Trust have agreed to act as the trustee and management agency of the trust for the benefit of the beneficiaries for the benefit of the beneficiaries.

Asset-backed commercial paper will be issued in two batches in the Chinese interbank market after registration with the Dealers Association, namely priority and secondary asset-backed commercial paper, with a total face value of RMB 2.6 billion.

The Board believes that asset-backed commercial paper issuance can diversify the Group's fund-raising channels and obtain low-cost capital, which can be used to improve the Group's financing structure and enhance its operating activities and investments. It is estimated that the interest rate for issuing asset-backed commercial paper will not exceed 2.2%. This interest rate is far lower than the average financing interest rate of 2.54% of the Company on June 30, 2026, thereby effectively reducing the company's overall financing costs.

100% of the proceeds from the issuance of asset-backed commercial paper will be used to repay existing debts and effectively optimize the Group's debt-to-asset ratio. The directors believe that the overall turnover of the Group's assets will be accelerated and the total revenue generated will be increased after the sale of asset-backed commercial paper issuance matters. Furthermore, the proposed transfer of the underlying assets through this arrangement would expedite the return of the Group's accounts receivable. On June 30, 2026, the Group's accounts receivable, notes and electricity price subsidy accounts receivable were approximately RMB 9.16 billion. After assets support the issuance of commercial paper, the Company will be able to reduce this balance by approximately RMB 2,6001.7 billion.

Furthermore, asset-backed commercial paper is a direct financing product for institutional investors. It can enhance the company's image as a publicly rated and market-tested issuer, show its credibility through transparent pricing and strong demand, establish lasting investor relationships during the roadshow, prove the excellent quality of underlying receivables, and establish a reliable track record, paving the way for future entry into the capital market, thereby further expanding the company's influence and recognition in the capital market.