CLP China issues 1 billion RMB Panda bonds for the first time

CLP Holdings (00002.HK) wholly-owned subsidiary "CLP China" issued a 3-year RMB 1 billion fixed-rate bond in the Chinese interbank market, further enhancing the company's ability to obtain cost-effective financing to support renewable energy development.

This transaction marks the first issuance under the Panda bond program registered by CLP China with the National Association of Financial Market Institutional Investors in China. Panda bonds are RMB-denominated bonds issued by foreign entities in mainland China. The issuance interest rate for this bond is 1.85%, which is at the lower end of the subscription rate range, recording 3.35 times oversubscription, reflecting investors' recognition of CLP China's excellent and stable creditworthiness. Both CLP China and this bond received a AAA rating from the domestic rating agency China Chengxin.

CLP Holdings' Chief Financial Officer, Ji Anli, stated that the group can obtain financing in a more cost-effective manner and expand to a broader and more diversified investor base, making long-term finances more flexible.

The funds raised from this bond will be used for financing or refinancing eligible renewable energy projects of CLP China in mainland China, according to CLP Holdings' Climate Action Financing Framework