Herbert Smith Freehills has advised State Grid Corporation of China (State Grid) on a US$2 billion Rule 144A/Regulation S offering of senior guaranteed notes.
The notes consist of US$500,000,000 1.750% Senior Guaranteed Notes due 2018, US$1,000,000,000 3.125% Senior Guaranteed Notes due 2023 and US$500,000,000 4.375% Senior Guaranteed Notes due 2043. The notes are rated “AA-” by S&P Ratings Services, “Aa3” by Moody’s Investors Service and “A+” by Fitch Ratings Services, and will be listed and traded on the Hong Kong Stock Exchange. The notes were issued by a subsidiary of State Grid, State Grid Overseas Investment (2013) Limited, and guaranteed by State Grid.
State Grid is the largest utility corporation and the largest power grid corporation in the world, and the largest power grid construction and operation company in China, measured by revenue. It is principally engaged in the construction and operation of a power grid network that covers 26 provinces in China, reaches more than 88% of China’s territory and serves a population of over 1.1 billion. In 2011 and 2012, State Grid ranked seventh in the “Fortune Global 500.”
The Herbert Smith Freehills team was led by partners Kevin Roy and Tom Chau, who were supported by senior associates Zhong Wang and Sherry Lai, and associates Jin Kong, Isaac Chen, George Wu and Shell Chen.
Partner Kevin Roy commented:
“This transaction is the first dollar-denominated bond issue from State Grid Corporation of China and a significant offering in the current market. We are pleased to have supported the company in this transaction as it enters new markets and reaches new investors.”
Relationship Partner of State Grid, Tom Chau, commented:
“We have a long standing relationship with State Grid, which is now further strengthened by our engagement in this significant transaction for State Grid. I look forward to continuing to be their trusted legal adviser in future mandates.”
The joint lead managers and joint bookrunners on this transaction included HSBC, Goldman Sachs (Asia) L.L.C., Morgan Stanley, BOC International, ICBC International, J.P. Morgan, Citigroup, Deutsche Bank and UBS.
Linklaters, King & Wood Mallesons, Jun He Law Offices and Conyers Dill & Pearman also advised on this transaction.
