Xinte Energy (HKG:1799) has entered into a 500 million yuan finance lease agreement with Everbright Financial Leasing involving a sale-leaseback arrangement for its power plant equipment and facilities, according to a Tuesday Hong Kong bourse filing.
The renewable energy company's shares fell nearly 5% in Wednesday's late-morning trading.
Under the agreement, Xinte Energy will transfer ownership of assets, including boilers, steam turbine units, and generators, from its self-owned power plant to Everbright Financial Leasing and lease them back for five years.
Net proceeds from the transaction will be used to repay the company's borrowings.