on nov. 30, hero asia, a wholly owned subsidiary of china longyuan power, successfully completed its offering pricing of advanced hybrid bonds. total amount of the bonds reached 400 million us dollars and the transaction was completed on dec. 7. this issuance of the hybrid bonds was very popular in the market because of its good fundamentals, excellent rating and appealing design of provisions. the par value of the bonds was locked at the low level of 5.25% and the bonds were over 20 times subscribed by 92 investment agencies.
it is very significant that china longyuan power has become the first chinese h-share listed company that has successfully issued advanced hybrid bonds. through the innovative design of its product structure, the company has created a new channel for oversea equity financing of the h-share state-owned enterprises. in addition, seizing the best issuance window, it fully showed the implied value of china longyuan power as the leading enterprise of power industry so that its bonds were oversubscribed greatly and the final pricing was far lower than the interval of the initial price.
the reasons of the successful issuance of the bonds are as follows: the company’s rapid development in new energy field in the past ten years, stable leading position of the company in the industry and its management and profiting level greatly superior to its peers; good corporate image, market reputation and investor basis resulted from its full communication with foreign investors in recent years; keen judgement, resolute decision-making and excellent executive ability in oversea financial market.
this successful issuance of the bonds has further improved longyuan brand’s influence in the international market and laid a solid foundation for the successive implementation of the company’s oversea strategy.