By William Gullotti
Buffalo, N.Y., April 8 – China’s State Grid International Development Ltd., via wholly-owned subsidiary State Grid Europe Development (2014) plc, sold $1 billion of guaranteed notes in two tranches due 2025 and 2027 (A1/A+/A+), according to a listing notice with an appended offering circular on Friday.
Both Regulation S tranches are guaranteed by the parent company.
The series A tranche of the offering, totaling $350 million and priced at 99.529, is a green issue with a 3¼% coupon which matures in 2027.
The series B tranche, priced at 99.66, is for $650 million with a 3 1/8% coupon and matures in 2025.
Each tranche has a make-whole call that may be exercised, in whole or in part, with a Treasuries plus 15 basis points premium. The make-whole option is available until one month prior to maturity, followed by a par call.
The issuer may also redeem either series early in whole, but not in part, for taxation reasons at par plus interest. Bondholders of both series will also be able to put the notes at 101 plus interest for a change of control and at par plus interest if a registration event occurs.
Bank of China, ICBC (Asia), Citigroup, Mizuho Securities, DBS Bank Ltd. and Santander are the joint global coordinators, joint lead managers and joint bookrunners for the offering.
Also serving as joint lead managers and joint bookrunners are BofA Securities, BBVA, Credit Agricole CIB, Natixis, MUFG, Societe Generale CIB, BNP Paribas, Agricultural Bank of China Ltd., Hong Kong Branch, ABC International, CLSA, Goldman Sachs and Deutsche Bank.
Bank of China, DBS Bank Ltd. and Santander also served as joint green structuring advisors for the series A notes.
Proceeds from the series A notes will be used to finance and/or refinance eligible green assets. Proceeds from the series B notes will be used for general corporate purposes.
Listings for each series of notes are expected on the Hong Kong Exchange effective April 8.
The issuer is a UK-registered entity incorporated for the sole purpose of issuing debt securities. The guarantor is a wholly-owned subsidiary of State Grid Corp. of China.
| Issuer: | State Grid Europe Development (2014) plc
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| Guarantor: | State Grid International Development Ltd.
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| Issue: | Guaranteed notes
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| Amount: | $1 billion
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| Bookrunners: | Bank of China, ICBC (Asia), Citigroup, Mizuho Securities, DBS Bank Ltd., Santander, BofA Securities, BBVA, Credit Agricole CIB, Natixis, MUFG, Societe Generale CIB, BNP Paribas, Agricultural Bank of China Ltd., Hong Kong Branch, ABC International, CLSA, Goldman Sachs and Deutsche Bank
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| Counsel to issuer: | Clifford Chance (English), DeHeng Law Offices (China)
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| Counsel to bookrunners: | Linklaters (English), Commerce & Finance Law Offices (China)
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| Trustee: | Citicorp International Ltd.
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| Change of control: | At 101 plus interest
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| Registration event: | At par plus interest
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| Pricing date: | March 30
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| Issue date: | April 7
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| Listing date: | April 8
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| Ratings: | Moody’s: A1
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| S&P: A+
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| Fitch: A+
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| Distribution: | Regulation S
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| Series A notes
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| Amount: | $350 million
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| Maturity: | April 7, 2027
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| Green structuring advisors: | Bank of China, DBS Bank Ltd. and Santander
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| Coupon: | 3¼%
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| Price: | 99.529
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| Call: | Make-whole at Treasuries plus 15 bps until March 7, 2027 followed by a par call
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| ISIN: | XS2435161539
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| Series B Notes
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| Amount: | $650 million
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| Maturity: | April 7, 2025
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| Coupon: | 3 1/8%
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| Price: | 99.66
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| Call: | Make-whole at Treasuries plus 15 bps until March 7, 2025 followed by a par call
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| ISIN: | XS2460254282
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