As Chinese power giant offers more bonds, global firm continues to benefit

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A Big Six firm has again advised the world’s largest utility corporation in its latest overseas bonds offer. Herbert Smith Freehills acted for State Grid Corporation of China, which recently raised US$5bn in the first draw of its latest bond program.

The offer is the largest G3 bond this year, and the largest bond issue every by a Chinese state-owned enterprise. The whole medium multi-tranche program is worth US$7.7bn.

Partners Tom Chau and Zhong Wang, in Beijing, advised State Grid. They were assisted by senior associate Isaac Chen. Partner Siddhartha Sivaramakrishnan and senior associate Jin Kong in Singapore, and associate George Wu in Hong Kong, provided US securities advice.

State Grid is a long-time HSF client, Chau said. The company, which was the largest corporation in China by 2015 revenue, first tapped the overseas bond market in 2013. The company delivers power to 1.1 billion people across 26 provinces in China and owns overseas assets in Australia, the Philippines, Brazil, and Portugal.

“We have advised State Grid on all of its overseas bond offerings to date and that work has raised an aggregate of over US$12bn,” Chau said.

“The success of the offering in uncertain markets is a testament to State Grid's strong global reputation and indicates there is plenty of investor demand for issues backed by solid company fundamentals,” Zhong said.


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