The market's first coal-fired power REIT has officially begun its offering. On September 22, Great Wall Fund announced that the Great Wall Huaneng Coal-Fired Power REIT (Code: 508081) will commence offline bookbuilding on September 28 from 9:00 to 15:00, with an inquiry price range set between RMB 2.716 and RMB 3.319 per unit. The final subscription price for fund units will be determined through this offline inquiry process.
According to the announcement, the China Securities Regulatory Commission has approved the issuance of a total of 1 billion fund units for the Great Wall Huaneng Coal-Fired Power REIT. Of these, the initial strategic placement accounts for 700 million units, representing 70% of the total; the initial offline offering comprises 210 million units, or 21%; and the initial allocation for public investors is 90 million units, making up 9%. Based on the fund's prospectus, the expected total fundraising scale is approximately RMB 3.018 billion. (Final unit allocations for strategic placement, offline offering, and public issuance will be adjusted based on any clawback mechanisms, if applicable.)
The underlying asset of the Great Wall Huaneng Coal-Fired Power REIT is the Huaneng Qingdao Project, located in the Dongjiakou Economic Zone of Qingdao. This facility serves as a key power source for Qingdao's southern power grid, underpinning stable electricity supply for regional high-end manufacturing and residential use. It is also the only large-scale centralized heat source in the area, holding an exclusive heating concession license for the Dongjiakou Economic Zone.
The fund's prospectus details that the project primarily includes two 350MW supercritical extraction-condensing generating units, paired with two 1070t/h supercritical coal-fired boilers, along with desulfurization, denitrification, ash and slag removal systems, wastewater treatment facilities, and one enclosed coal storage yard. Leveraging an integrated business model combining power generation, steam supply, and heating services, the Huaneng Qingdao Project has posted steady revenue growth over the past three years, with net profit and EBITDA continuing to climb.
Excluding any potential fund expansion, asset acquisitions, or disposals, the fund's cash flow projections indicate a full-cycle internal rate of return of 5.92% over its duration. The projected net cash flow distribution rates for the April-December 2026 period and the 2027 fiscal year are 5.82% and 8.00%, respectively. (These projected distribution rates are for illustrative purposes only and do not represent the fund's actual future net cash flow distribution rates. Actual dividends will be subject to official fund announcements. The above content is illustrative only and does not constitute investment advice. Funds carry risks, and investment requires caution.)
In recent years, coal-fired power has been transitioning from a highly cyclical power generation asset into a utility-type energy asset that integrates supply security, grid regulation, and capacity value. This shift aligns well with the requirements of public REITs for sustained, stable, and predictable cash flows from underlying assets. Coal-fired power REITs serve as a critical financial vehicle for streamlining the investment, financing, management, and exit cycle of the coal power industry, while also representing a significant practice in using capital markets to empower the real energy sector and support the achievement of dual carbon goals.
Bookbuilding Guidelines: The offline bookbuilding process will be conducted through the Shanghai Stock Exchange's "REITs Inquiry and Subscription System." Offline investors must complete their registration with the Securities Association of China and obtain a CA certificate on the SSE's "REITs Inquiry and Subscription System" before noon on September 24, 2026 (X-1 day), the trading day prior to the inquiry date. Additionally, their proprietary investment accounts or asset management products that are directly managed and intended for participation in this fund's offline inquiry and subscription must be registered as placement targets. Only after completing these procedures can offline investors participate in the inquiry.
The offline offering will be executed via the SSE's "REITs Inquiry and Subscription System." The fund manager has set the inquiry price range at RMB 2.716 to RMB 3.319 per unit, with the final subscription price to be determined through the offline inquiry. The inquiry period for this offering runs from 9:00 to 15:00 on September 28, 2026. Each placement target has a maximum subscription cap of 210 million units for this offline issuance. Investors participating in the offline inquiry must submit qualification review materials to the fund manager and financial advisor via CITIC Securities' public REITs investor service system (https://issue.cmschina.com/reits) before noon on September 24, 2026.
During this offline offering, subscription and payment will occur simultaneously. All validly quoted placement targets announced in the Offering Announcement must participate in the offline subscription and remit the corresponding subscription funds and fees within the offline subscription window. Placement targets should use their capital accounts registered with the Securities Association of China to remit the full subscription amount and fees to the fund manager.
Eligible Offline Investors: These include securities companies, fund management companies, insurance companies and their asset management subsidiaries, commercial banks, policy banks, wealth management companies, futures companies, trust companies, finance companies, qualified foreign investors, qualified private fund managers, and other professional institutional investors recognized by the China Securities Regulatory Commission and the Shanghai Stock Exchange. The National Social Security Fund, basic pension insurance funds, and annuity funds may also participate in offline inquiry for real estate funds in accordance with relevant regulations.
For more information on the inquiry process, investors can visit the official websites of the Shanghai Stock Exchange or Great Wall Fund to download and review the "Inquiry Announcement for Fund Units of the Great Wall Huaneng Coal-Fired Power Closed-End Infrastructure Securities Investment Fund."
Product Fee Structure: 1) For public investors, the off-exchange subscription fee rate for this fund (amount M) is 0.4% for M less than RMB 5 million, and RMB 1,000 per transaction for M equal to or greater than RMB 5 million. The on-exchange subscription fee rate mirrors the off-exchange rate, with actual fees subject to what securities companies charge. 2) The fund's management fee is 0.16% per annum, planning management fee is 0.04% per annum, operating management fees are detailed in the prospectus, and the custody fee is 0.01% per annum. 3) No subscription fee is charged for strategic investors and offline investors. The specific applicable sales fee rates will follow the fund's legal documents and sales institution business rules as announced by the manager at the time.
Risk Warning: Funds carry risks, and investment requires caution. Before investing in this fund, investors should carefully read the fund's legal documents, including the Fund Contract, Prospectus, and Product Data Summary, to fully understand the fund's risk-return characteristics and product features. Investors should assess their own risk tolerance based on their investment objectives, time horizon, experience, and financial situation, and make rational, cautious investment decisions with a clear understanding of the product and sales suitability recommendations, independently bearing investment risks. This fund has been assessed by the manager as carrying a risk level of R4 (medium-high risk), suitable for clients with a risk preference of C4 (aggressive) and above. Specific risk ratings are subject to the distributors' classifications.
The fund manager commits to managing and operating fund assets with honesty, diligence, and due responsibility, but does not guarantee profitability or minimum returns. The operating history of funds in China is relatively short and may not reflect all stages of stock and bond market development. Past performance and net value levels do not predict future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. After making an investment decision, investors bear the investment risks arising from fund operations and net value fluctuations. Investors should strictly comply with anti-money laundering regulations and fulfill their obligations when investing. This investment perspective reflects views at the time of writing and may change in the future; it is for reference only and does not constitute substantive investment advice or the final investment stance of Great Wall Fund. The company assumes no responsibility for investment decisions made based on this content.
This fund primarily invests in asset-backed special plans with real estate projects as the ultimate investment target. Key risks during investment operations and trading include risks related to real estate funds, risks related to the underlying real estate projects, and other risks. Public REITs operate in a closed-end format, do not support subscription or redemption, and can only be traded on the secondary market, creating liquidity risks. Additional risks related to real estate funds and underlying projects are detailed in the prospectus and other legal documents. The fund manager operates with a business isolation system from its shareholders, who do not directly participate in the fund's investment operations. This product is issued and managed by Great Wall Fund Management Co., Ltd., and distributors do not assume responsibility for the product's investment or redemption obligations. This material is for promotional purposes only and does not serve as any legal document.