On June 5 at 11 p.m., State Grid Corporation of China successfully issued its first offshore renminbi (RMB) bond in four years, raising RMB 4 billion through a dual-tranche offering.
Source: China Electric Power News
On June 5 at 11 p.m., State Grid Corporation of China successfully issued its first offshore renminbi (RMB) bond in four years, raising RMB 4 billion through a dual-tranche offering. The issuance comprises a 5-year tranche of RMB 2 billion with a 2.00% coupon rate, and a 10-year tranche of RMB 2 billion at 2.25%. The deal attracted over 11 times subscription, setting new records for a central SOE’s offshore RMB bond in terms of issuance size, maturity length, and cost efficiency.
This marks State Grid’s return to the international capital markets after a four-year hiatus, achieving breakthroughs in issuance cost, maturity profile, subscription scale, and investor base. Both tranches tightened significantly from initial price guidance by 50 and 55 basis points respectively, pricing 230 and 250 basis points below comparable USD bonds issued by the company — representing the lowest issuance rates ever for a central SOE.
Following the issuance, offshore RMB financing now accounts for 4 percentage points more of State Grid’s headquarters’ debt, effectively extending debt maturity and improving risk resilience. A comprehensive online roadshow showcased the company’s strategic vision and operating performance, boosting confidence among over 200 participating investors. The maximum subscription multiple reached 11.2 times.
This issuance set records as the largest single offshore RMB bond by a central SOE and marked State Grid’s first successful 10-year RMB bond. The competitive coupon rates establish a new benchmark for Chinese corporates abroad, attracting strong demand from more than 40 international investors spanning Europe, the Americas, and Asia.
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