on august 5, hero asia investment ltd., a wholly owned subsidiary of china longyuan power, successfully completed its offering pricing of 3-year us$300 million advanced bonds abroad. this issuance of the usd senior bonds seized the best market window under the challenging market environment based on the company’s good fundamentals, excellent rating and sufficient market road show. the bonds were over twice subscribed by 56 high quality investment agencies, and the coupon rate of the bonds was locked at 3.25%. after the bonds are successfully issued, the funds will be used to replenish domestic working capital and replace part high-interest loans. the company can reduce at least rmb 120 million of overall financial costs for the duration.
the successful issuance of the usd bonds is one of the most remarkable financing transactions in the world’s renewable energy industry in this year. this again shows that international capital market highly recognizes good development prospect, stable and reliable financial performance of china longyuan power. moreover, this issuance is also another successful debt financing of china longyuan power after its rmb dim sum bonds, usd perpetual bonds and several bilateral multi-currency loans. it has further enriched overseas debt financing varieties and laid a solid foundation for successive implementation of the company’s overseas strategy.