(Yicai Global) June 12 -- Chinese utility Yangtze Power, the world’s largest listed hydropower company, could raise as much as CNY20 billion (USD2.8 billion) by issuing shares in the United Kingdom via the Shanghai-London Stock Connect program.

The Beijing-based firm will issue global depositary receipts equal to up to 1.1 billion shares, it said in a statement yesterday after its stock price closed at CNY17.60 (USD2.49). It plans to use the proceeds from the offering to repay the loan it took to buy equity in Peruvian utility Luz del Sur.

Shares in Yangtze Power [SHA:600900] were down 0.23 percent at CNY17.56 (USD2.49) as of 11.04 p.m.

The company will issue new ordinary yuan-denominated A shares for the GDRs, it said, but did not disclose how many GDRs will equate to one share or when it will complete the issuance. It already has total share capital of 22 billion shares.

Yangtze Power is best known for building and operating the Three Gorges Hydropower Station in China. The firm has nearly 45.5 gigawatts of installed capacity along the Yangtze River, more than any other company’s hydropower capacity worldwide.

GDRs are the securities traded in the UK to represent equity interest in China and were first issued by Huatai Securities in June last year. China Pacific Insurance also revealed earlier this week that it plans to issue GDRs in London. Foreign investors can buy and sell them the bills freely in the secondary market.

Editor: James Boynton