YOUNGOR'S 3 Billion Yuan Stake In West East Gas Pipeline Yield Target Of About 10%.

Press

The announcement of the 21 day announcement that the subscription scale of the League of Nations Fund was 10 billion 10 million yuan would give priority to the three line project of the west to east gas pipeline project, and will continue to invest in other energy enterprises or projects under the premise of ensuring the investment of the West three line project.

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YOUNGOR, a real estate company, has been attacking the investment field in recent years. This time it extends to the national key oil and gas project, the west to east gas pipeline project, which has been monopolized by state assets.

In November 21st, YOUNGOR announced that the company intends to invest 3 billion yuan to subscribe for 30% of the investment share of the Beijing alliance energy industry investment fund (limited partnership) and become a limited partner of the League of nations limited fund to invest in CNPC's three gas pipeline project.

YOUNGOR said that the League of Nations Fund will work together with the national social security and Baoshan Iron and Steel Group to invest in the three west east gas pipeline project.

The West three line project is a national key project approved by the State Council, and is a major national energy backbone network project.

The whole project includes a trunk line, five trunk lines and three branch lines.

The trunk line has been the first station in Huoerguosi, Xinjiang. After 10 provinces and autonomous regions such as Xinjiang, Gansu and Ningxia, Fuzhou has been more than 5000 kilometers long.

The people's daily commented in a report in May this year that the CNPC West three line project will represent the national capital of the whole nation and the industrial fund representing private capital in accordance with the same conditions and equal treatment. Meanwhile, the introduction of the national key project is the first in China.

YOUNGOR yesterday reported 7.01 yuan, up 1.3%.

Private capital entering west east gas pipeline

YOUNGOR said that because of the actual controller of the company

Indirectly holding the equity of the League of Nations Industrial Investment Fund Management (Beijing) Limited company, and the management company will invest 10 million yuan to hold the 0.1% share of the fund of the League of nations, and manage the fund as a general partner and an executive partner. Therefore, YOUNGOR's investment constitutes a related paction.

The paction amounted to 3 billion yuan, accounting for 24.84% of the audited net assets of YOUNGOR in 2011. The investment should be submitted to the shareholders' meeting after deliberation and approval by the board of directors.

According to the announcement issued by YOUNGOR on 21, the scale of the subscription of the League of nations fund is 10 billion 10 million yuan.

The three line project will continue to invest in other energy enterprises and projects under the premise of ensuring the investment of West three line project.

Regarding the source of the three west east gas pipeline, Zhou Jiping, President of PetroChina, introduced in the interim results conference that PetroChina will form a joint venture with the social security fund, the municipal infrastructure construction fund of the National Federation of industry and Commerce and Baoshan Iron and Steel Co., and the four sides jointly build the "West three line".

According to Zhou Jiping's statement, it can be deduced that the Beijing alliance of energy industry investment fund subscribed by YOUNGOR should be related to the urban infrastructure construction fund of the National Federation of industry and commerce.

"The West three line will be the largest project to open to social capital, which is more far-reaching."

According to the people's daily report, the investment fund of urban infrastructure industry "concentrates on the interests of non-governmental investors, and all private capital can enter the energy infrastructure such as PetroChina through the platform.

The West three line project not only introduced a large number of private enterprises' funds, but also attracted the private financial management funds raised by ICBC, sharing benefits and sharing risks, reflecting the sharing of state owned projects.

"Yield target of about 10%".

However, regarding the specific yield of this investment, YOUNGOR did not explicitly indicate that it only called "the company will participate in the investment with its own funds". "According to the calculation, the western three line project, which is invested by the League of Nations Fund, will achieve sound earnings after putting into operation, which will have a positive impact on the company's financial position and the results of its business operation". "This investment is conducive to the pformation of the company's investment business to industrial investment, so as to achieve stable and long-term benefits."

Regarding the prospect of YOUNGOR's investment, Baosteel's previous announcement can be used as a reference.

In October 30th this year, Baosteel announced that the company will join the three west east gas pipeline project. "According to the preliminary calculations of major shareholders in the project, the total investment target of the West three line pipeline project is 116 billion yuan, the target rate of tax return is about 10%, and the target period of investment recovery is about 11 years.

As an important national energy infrastructure, the project expects the natural gas pipeline system to have stable cash flow and return.

The announcement also said that the PetroChina Group intends to engage in joint venture projects with the west by the three line project, and the registered capital of the joint venture company is expected to be 62 billion 500 million yuan.

All parties involved in the project will invest in China Petroleum, National Social Security Fund Council, urban infrastructure industry investment (partner investment) fund, Baosteel and Warburg.

PetroChina invested 32 billion 500 million yuan (about 52% of the equity ratio of the joint venture).

China Petroleum has declared that the new joint venture will be a company which is completely independent of PetroChina.