Leading global firm Herbert Smith Freehills and its joint operation partner Kewei have advised power generation giant Huaneng Power International Inc. on its US$600 million Regulation S offering of guaranteed fixed rate notes listed on the Stock Exchange of Hong Kong.
The issue includes US$300 million 2.250% bonds due 2025, and US$300 million 2.625% bonds due 2030.
This is Huaneng Power International's first issue of US dollar-denominated bonds, attracting US$3.2 billion in subscription. ICBC International, Credit Suisse and Bank of China acted as joint global coordinators, joint lead managers and joint bookrunners, with DBS and CLSA as joint lead managers and joint bookrunners.
"This milestone transaction again highlights and demonstrates our commitment to our longstanding clients, Huaneng Power International," said Herbert Smith Freehills partner Tom Chau. "Both tranches of bonds generated broad interest in the market, adding to a consecutive slew of bond issues by China Huaneng Group and its subsidiaries.”
Huaneng Power International will use the funds raised to refinance offshore indebtedness.
"This marks yet another capital markets deal on which Herbert Smith Freehills Kewei's joint operation has advised for China Huaneng since our launch last year,” said Herbert Smith Freehills Kewei partner Stanley Xie. "Our success in this area demonstrates the advantage of a one-team approach and our ability to provide seamless service to our Chinese clients.
Herbert Smith Freehills Kewei advised China Huaneng Group on a US$1.5 billion Regulation S offering of guaranteed fixed rate notes listed on the Stock Exchange of Hong Kong in December 2019, while earlier this month Herbert Smith Freehills in Beijing and Hong Kong advised its subsidiary, Huaneng Renewables Corp. Ltd., on its voluntary delisting of H shares on the Stock Exchange of Hong Kong.
Tom and Stanley led the team advising Huaneng Power International, assisted by senior associate Jin Kong in Hong Kong and associate Sean Ji in Shanghai. Senior associate Isaac Chen in Beijing advised on the listing application for the bonds on the Stock Exchange of Hong Kong.