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SPIC Issues $800 Million Senior Bonds Abroad
Source:Writer:Date:31/10/2018

On October 24, State Power Investment Corporation Limited (SPIC) has successfully priced two batches of senior unsecured S-rule bond transactions, with a total value of 800 million US dollars. All raised fund will be used to replace part of the acquisition bridge loan for the Sao Simao Project in Brazil.

The issuing body of the senior bonds is State Power Investment Overseas Co.,Ltd. of China (SPICOI), a subsidiary of SPIC. The Keep Well Deed for this issuance is provided by SPIC, the debt rating by Fitch Ratings is A-, the two batches of senior bonds are finally priced at T+135 and T+170, the coupon rate is 4.25% and 4.65% respectively, and the final issuing scale is 300 million US dollars for three-year bonds and 500 million US dollars for five-year bonds.

This is the second time for SPIC to appear in the international capital market after the first issuance of $1.2 billion senior bonds in 2016. At a time of severe fluctuation in global capital markets, as major stock indexes fall sharply and global investors are turning to safe-haven assets, this transaction is priced. Even so, the transaction still achieved 3.6 times of subscription, with good investor distribution. Both the two batches of senior bonds have realized the narrowest interest rate differential under the same structure of non-financial enterprises so far this year. In addition, this issuance is also the largest US dollar issuing scale in the Chinese-funded power generation industry this year, of which the three-year bond issued has realized the narrowest interest rate differential among the bonds with the same maturity issued by the Chinese-funded central enterprises depending on self-credit.

The successful issuance marks that the overall strength of SPIC has been unanimously recognized by the international capital market, and also lays a solid foundation for the SPIC going abroad.

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