Hong Kong’s CLP Power leaps into Australian market with US$339 million Kangaroo bond
- City’s biggest electricity provider launches three-year bond, the first such foray by a Hong Kong commercial entity into Australian market
CLP Power, Hong Kong’s biggest electricity provider, said it has launched a three-year A$500 million (US$339 million) Kangaroo bond, marking the first such foray by a Hong Kong commercial entity into the Australian market.
The Kangaroo bond is unconditionally guaranteed by CLP Power, which holds an A1 (stable) rating from Moody’s and an A+ (stable) rating from S&P. Kangaroo bonds are Australian dollar-denominated bonds issued by foreign entities in Australia.
“This successful issuance in the Australian market enables us to further diversify our sources of funding in a cost-effective way, and we are encouraged by the favourable market response,” said Alexandre Keisser, chief financial officer of CLP Holdings.
The floating-rate tranche was priced at 85 basis points above the benchmark three-month Bank Bill Swap rate.
The fixed-rate tranche was priced at 85 basis points above the semi-quarterly asset swap rate, equivalent to an annualised rate of 5.10 per cent.
