CLP Power taps Australian market with $337.5m Kangaroo bond

This is a first by a Hong Kong commercial corporate entity.

CLP Power Hong Kong Limited (CLP Power) is leaping into the Australian market with its three-year bond worth $337.5m (A$500m) through its wholly-owned subsidiary CLP Power Hong Kong Financing Limited.

In a statement, CLP Power said the dual-tranche issuance is composed of a three-year 236.11m (A$350m) floating-rate note tranche and a three-year A$150m ($101.19m) fixed-rate note tranche. This is unconditionally and irrevocably guaranteed by CLP Power. 

"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 CLP Holdings Limited CFO Alexandre Keisser. 

The floating-rate tranche was priced at 85 basis points above the benchmark three month Bank Bill Swap rate. Meanwhile, the fixed-rate tranche was priced at 85 basis points above semi-quarterly coupon matched asset swap rate, equivalent to an annualised rate of 5.10%. 

Through the Kangaroo bond, CLP Power said it was able to expand its debt capital market financing activities, broadening its funding options and enhancing its resilience. 

A$1 = US$0.67