By Marisa Wong
Madison, Wis., June 19 - China Power International Development Ltd.'s subsidiary, Wu Ling Power Corp., issued RMB 500 million of short-term debentures on Tuesday, according to a company announcement.
The debentures have a coupon of 4.91% and a maturity of 365 days.
This is Wu Ling Power's first tranche of debt financing instruments for 2012. The subsidiary previously announced that it planned to issue RMB 1 billion of debentures in two tranches this year.
In February 2011, Wu Ling Power received approval from China's National Association of Financial Market Institutional Investors to issue RMB 1 billion of short-term debentures, with an effective period of two years. The subsidiary issued RMB 1 billion of one-year debentures in two tranches in March 2011. As reported before, the 2011 bonds were retired on March 24.
The subsidiary said in April that it would re-issue RMB 1 billion of short-term debt in 2012.
According to the most recent announcement, the National Association of Financial Market Institutional Investors reconfirmed Wu Ling Power's application to issue RMB 1 billion of debt financing instruments on June 11. The approval is again valid for two years.
China Construction Bank Ltd. and Bank of China Ltd. were the joint lead underwriters for the first tranche of debentures.
Wu Ling Power will use proceeds from the first tranche to repay bank loans, supplement working capital, lower financing costs and further adjust its debt structure.
Hong Kong-based China Power International's principal business is to develop, construct, own, operate and manage large power plants in mainland China.
| Issuer: | Wu Ling Power Corp.
|
| Issue: | Short-term debentures
|
| Amount: | RMB 500 million
|
| Maturity: | 365 days
|
| Coupon: | 4.91%
|
| Underwriters: | China Construction Bank Ltd. and Bank of China Ltd.
|
| Settlement date: | June 19
|
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