King & Wood Mallesons (KWM) advised China General Nuclear Power Corporation (CGN) as its international and PRC counsel on its EUR500 million seven-year euro-denominated green bonds and USD900 million US dollar-denominated debt with multi-period in the Irish and Hong Kong Stock Exchange respectively (the “Bonds”). The bonds are issued by CGNPC International Limited, a wholly-owned subsidiary company of CGN and unconditionally guaranteed by CGN. The complex multi-currency transaction with several periods in two regions, is rarely seen in the market.
CGN is a large stated-owned enterprise that possesses a wealth of experience in domestic and overseas nuclear power construction and operation. The bonds comprise of a EUR500 million 1.625 per cent due 2024 green bonds and multi-period debts of USD350 million 3.125 per cent guaranteed bonds due 2022 and USD550 million 3.750 per cent guaranteed bonds due 2027, all of which were rated A3 by Moody’s and A+ by Fitch. The bond issuance makes CGN the second Chinese power enterprise to issue green bonds in the international capital markets, expanding its reach into European renewable energy markets and thereby cementing its position as a leading global clean energy corporation.
The transaction marks the third bond issuance KWM has assisted CGN on since 2015 and a testament of KWM’s strength and capability in acting for Chinese state-owned enterprises.
The KWM team was led by Hong Kong-based partner Hao Zhou, supported by associates Michael Lu and Zhang Jun. The KWM PRC team was led by Shenzhen-based partner Pan Yujia, supported by associates Yao Tingting and Yang Ying, with support from Shanghai partner Zhao Xiaohong.