China Huaneng Group Hong Kong Ltd. successfully issued US$500 million perpetual bonds

On October 30, China Huaneng Group Hong Kong Limited successfully completed the issuance of US$500 million senior perpetual bonds through its wholly-owned subsidiary Huaneng Hong Kong Capital Corporation. This is the first time that Huaneng publicly issues US dollar perpetual bonds overseas, which lays a good foundation for the internationalization of Huaneng, optimization of capital structure, broadening of financing channels and reduction of financing costs.

This issuance of bonds is not redeemable for the first five years, and the coupon rate in the first five years is 3.6%. China Huaneng Group will provide credit support such as keepwell agreement and so on.

Liu Guoyue, Vice President of China Huaneng Group Co., Ltd. led the team for a three-day roadshow in Hong Kong and Singapore. Investors responded enthusiastically to the roadshow and expressed affirmation for Huaneng's leading position in China's power generation industry and its good credit standing. At the end of the roadshow, the initial guide price of the bond issuance was determined as 3.95% based on investors’ initial intentions and market conditions. The bonds were finally priced as 3.6% on October 23, reducing by 35 basis points from the original guide price, and were oversubscribed by 2.6 times.

It is reported that in the final allocation result, Asian investors accounted for 88% of the total investors, and European investors accounted for 12%, with extensive regional distribution of investors. In terms of investor type, the transaction is well-distributed, with 74% of orders from high-quality asset management companies, 10% from sovereign wealth funds and 9% from insurance companies.