CR Power further established new funding channel and lowered its funding costs via successfully issuing offshore corporate bond. The corporate bonds are valued at RMB2.0 billion or US$188.79 million.
Proceeds will be used to invest in the development and expansion of power generation projects and supplement general working capital.
The Issuance is divided into two tranches: 3-year and 5-year, each with issue size of RMB 1.0 billion or US$94.3 million, and coupon rate fixed at 2.90 per cent and 3.75 per cent respectively.
Coupons are paid semi-annually in arrears with no amortization during the life of the bond.
After issuing onshore RMB corporate bond and US$ senior notes earlier this year, through successfully issuing offshore RMB corporate bond, CR Power further expanded its investors base, which is beneficial for its long-term development. Furthermore, the Issuance allows CR Power to lock in and lower long-term funding costs, hence mitigating the impact of any potential future interest rate hike.
Do you know more about this story? Contact us anonymously through this link.