China Longyuan to sell USD 300m in 2016 bonds

Aug 6, 2013 - Wind farm operator China Longyuan Power Group Corp Ltd (HKG:0916) said Monday it would place USD 300 million (EUR 226m) worth of 2016 bonds to support its renewable energy operations.

The bonds, bearing an annual coupon of 3.25%, will be sold to professional and institutional investors outside the US, excluding Hong Kong. They will be issued by Hero Asia Investment Ltd, a subsidiary of China Longyuan Power. The closing date is August 12.

The proceeds from the offering will also go to strengthen the working capital of the Chinese power producer as well as for general corporate needs.

Goldman Sachs (NYSE:GS), Hong Kong-based Wing Lung Bank Ltd, CITIC Securities Corporate Finance, UBS (VTX:UBSN),
Morgan Stanley (NYSE:MS) and Agricultural Bank of China have been mandated as joint lead managers and bookrunners of the sale.

The bonds are expected to receive a BBB- rating by Standard & Poor’s (S&P).

China Longyuan produced 16,684,352 MWh of power in the first half of 2013, 16.41% more than a year before. Wind farm output jumped by 31.44% to 11,085,341 MWh.

(USD 1.0 = EUR 0.754)

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