| Financing the new construction project has been difficult for Dalian Power Company because of limited financing resources and modes, high capital cost, financing risk, and stringent loan terms. Currently a new generation project, the Ganjingzi Power Plant, has been approved by the government authorities. However, the financing problems have not been resolved. This has affected the implementation of the project and requires an urgent solution.Dalian Power Company plans to invest about RMB 10 billion Yuan in new generation projects OVER 10 years.80% of the capital will come from financing resources outside the company, an amount that is unprecedented to the company. Choosing the right financing mode is a key step to realize the financing objectives. This article reviewed the research on financing theory. It analyzed the related government policies, the financial market and characteristics of the company. And finally the article summarized the principals, specifications, merits and drawbacks of the company's previous projects financing, and provided a financing solution for the company. After analysis and comparison, that the selection of syndicated loans is the ideal solution for the actual situation of finacing projects to corporate. The article also provided a different syndicated loan mode which is optimized to lower the financial risks and capital costs. This offers the opportunity to improve the fund use efficiency, secure the investment and construction, increase the profitability and promote the healthy development of the company.This article can also be a reference for Dalian Power Company in the financing of future generation projects, for other utilities in financing their projects, and for commercial banks in syndicated loan projects. |
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