Shanghai Electric Power Co., supplier of a third of the electricity in China's richest city, plans to sell bonds to raise 1.5 billion yuan ($203 million) for a plant upgrade and a mine investment.
The power producer will use 200 million yuan to revamp a coal-fired power plant and spend 400 million yuan on a coalmine, Shanghai Electric said in a statement to the city's stock exchange today. The rest of the funds will be used to settle bank loans.

The sales are part of plans to raise as much as 3 billion yuan in bonds that Shanghai Electric unveiled Oct. 13. The utility wants to expand capacity and fuel supplies to benefit from surging power demand in the world's fastest-growing major economy.

Chinese power utilities' output increased 16 percent in the first 10 months of this year to 2.643 billion megawatt-hours, the Beijing-based China Electricity Council said Nov. 16. Power consumption rose 15 percent to 2.637 billion megawatt-hours during the period, according to the council, which represents 194 power industry members.