State Power withdraws redemption of perpetuals, may carry out buyback

By Marisa Wong

Los Angeles, May 10 – SPIC 2018 USD Senior Perpetual Bond Co. Ltd. is withdrawing its notice of redemption for its $500 million senior guaranteed perpetual capital securities guaranteed by State Power Investment Corp. Ltd., according to an announcement on Tuesday.

On April 28, the issuer had issued a notice that it planned to redeem the securities on the first call date of May 21.

However, due to issues caused by the Covid-19 pandemic, the redemption notice did not technically satisfy all requirements under the notes’ redemption conditions. Consequently, the issuer has to withdraw the redemption notice.

Considering that some securityholders may nevertheless wish to have their securities redeemed on the first call date, and to protect the interest of the holders, the issuer and guarantor are considering a buyback of the securities for cash.

The notes would be repurchased on or before May 17, with settlement no later than May 20, at a price of par. The total consideration will not include accrued distributions.

Holders who wish to have their securities repurchased should contact the issuer on or before May 13 (Li Xinyuan at lixinyuan@spicifc.com.hk or +86 138 1163 0405 / +852 5628 8627; Heidi Deng at engchen@spicifc.com.hk or +852 64449299; Liang Xiao at liangxiao@spic.com.cn or +86 182 0102 6939)

The issuer is a subsidiary of Beijing-based State Power Investment, which is an electricity generation company in mainland China.

© 2015 Prospect News.
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