Coal companies restructure foreign trade trusts to fall in love with mineral energy

2011 is a key year for the integration of coal resources in major coal-producing provinces outside Shanxi, and coal supply growth will be effectively controlled. In addition, the deepening of the integration of coal resources will promote the concentration of resources to large coal enterprise groups, increase the degree of concentration of the coal industry, and the ability of coal companies to control coal prices will increase significantly. It is expected that during the “Twelfth Five-Year Plan” period, as the country deepens its integration with coal, China’s future coal supply pattern will turn into an oligopoly situation.

Such large-scale and high-intensity industrial integration has freed up space for advanced production capacity and provided valuable development opportunities for the expansion of excellent companies. Constrained by a variety of factors, traditional banks could not meet industry consolidation at one time, and new projects brought a lot of funding gaps. At this time, responsive trust companies, private equity and other financial institutions actively intervened to provide coal companies with flexible and diverse channels, and took the opportunity to rush into the energy industry to seize opportunities.

According to statistics, in the year 2010, 21 trust companies participated in the issuance of 60 mineral resource trusts with a issuance size of 13.599 billion yuan. In the first half of this year, a total of 12 trust companies participated in the issuance of 34 such products, an increase of 13 compared with the same period last year, an increase of 61.9%; the issue size reached 7.498 billion yuan, an increase of 69.07%.

It is understood that China Foreign Economic and Trade Trust Co., Ltd. (hereinafter referred to as "Foreign Trade Trust") is the earliest trust company to enter this field. As early as in 2009, Foreign Trade Trust had already deployed the Shanxi coal resources integration project in advance and launched the “Xinxin No. 1 Energy Industry ** Collective Fund Trust Plan”. The original trust period of Xinxin No. 1 project was 1 year. During the actual project operation, the borrower returned the principal and income in advance within half a year.

In August 2010, Foreign Trade Trust launched a **-type trust plan for investing in coal resources in Shanxi Province - Xinxin No. 3 Energy Industry ** Collective Fund Trust Plan to raise capital to provide a private coal resource integration subject in Shanxi Province. In September 2011, the trust plan successfully realized the payment of benefits.

In September 2011, the Foreign Trade Trust again launched a plan to invest in mineral energy trusts, which aroused market concern. The product introduced by the foreign trade trust is called “Xinxin No. 8 Mining Equity M&A ** Collective Capital Trust Plan”, and the raised funds are provided to Shanxi Jiexiu Coal Enterprise to support its mergers and acquisitions in the coal mining industry. The payment of resource prices, etc., in the situation where the integration of coal resources in various places intensifies, it will help them to seize the upstream resources and provide more effective support for downstream companies.

For trust companies, mineral energy trusts are becoming a new profit growth point for trust companies as Yinxin cooperation and real estate trusts are blocked. On the other hand, due to the high threshold of the energy industry, such as the long-term "not bad" coal companies, has been suffering from no opportunity, coal reform provides trust companies access to the energy industry provides an excellent opportunity for the trust industry to create a new field.

For individual investors, energy trusts provide individual investors with a new, better investment option.