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CGN issues senior unsecured bonds in USD and euros


China General Nuclear Power Corporation (CGN) issued senior unsecured bonds in US dollars and euros in overseas capital markets on Dec 5.

Issued were $350 million worth of five-year unsecured bonds with interest rate of 3.231 percent, $550 million in 10-year bonds, 3.84 percent and 500 million euro-denominated seven-year bonds at 1.656 percent.

It is CGN’s largest ever issuing of overseas bonds and marks the first ever listing of green bonds in euro currency. The issuance also involved the largest participation rate of international investors for the company.

The bonds were positively subscribed to by institutional investors from Asia and Europe.

Under reasonable control and guidance, the USD-denominated valid orders worth $2.43 billion and green bonds worth 1.32 billion euros. It not only helps CGN cut down financing costs, but also optimizes the structure of investment and attracts more high-quality and long-term investors.

CGN, a major Chinese State-owned enterprise and the largest nuclear power reactor operator in China, attached high value to the bond issue.

Shi Bing, CGN senior vice president and Chief Accountant Wu Junfeng took part in the whole process including roadshows in various places across Asia and Europe which ran from Nov 27 to Dec 3.

The team’s efficient promotion to some 70 key investors was highly recognized and won a large number of potential subscribers, paving a solid foundation for the successful issuance.

The pricing team followed the market changes closely, studied and judged the real market demands and formulated a thorough price control strategy drawing previous experience. The final price was narrowed by 20-22.5 bps, ensuring the best issue price and subscriptions so far.

In addition, the professional support of principal underwriters from Bank of China, BNP Paribas in France, French investment bank Credit Agricole CIB, and ICBC (Industrial and Commercial Bank of China) International also helped secure the satisfactory result.

CGN has become the first among Chinese central enterprises to launch dual-currency products with multiple tenors, demonstrating its scientific decision and efficient execution.

The bonds further expanded overseas access to investing in CGN, represented by the diversified types of investors and their geographical distribution.

Data reveals that 66 percent of euro-denominated green bonds are subscribed to by European investors and 34 percent by those from Asia, while Asian investors subscribe to 80 percent of the USD-denominated senior unsecured bonds and the rest of the 20 percent are claimed by European buyers.

Investors, banks and fund management institutes account for the two largest shares, at 30 percent and 44 percent respectively. Insurance institutes take up 5 percent and companies and other investors occupy 21 percent.

According to the CGN, its green bonds satisfy the Green Bond Principles standards, and are certified by Deloitte Consulting.

The company has become one of the few power groups issuing green bonds in the international capital market.

CGN said the funds raised from its green bonds will be dedicated to renewable energy projects and sustainable development, which is expected to cement its leading status as a global clean and renewable energy company.