EM CREDIT SUPPLY: China Huaneng Group (HUANEN): New USD deal
"IPT: China Huaneng Group $Bmrk Reg S Green PerpNC3 at 4.7% Area" - BBG
New Issue: USD benchmark PerpNC3
IPT: 4.7% area
FV: 4.2% area
China Huaneng Group Hong Kong Treasury Management Holding Ltd, a subsidiary of China Huaneng Group Co., which, in turn, is wholly state-owned by the Chinese government, is coming to the market with a new PerpNC3 note. The note will be guaranteed by China Huaneng Group.
China Huaneng Group is focused on power generation and distribution and is one of the largest state-owned operators in China with around 287 GW of installed capacity. Its capacity is split between large-scale, high-efficiency coal-fired units (approximately 48%) and clean energy production (approximately 52%), including hydropower, wind power, and nuclear.
In terms of fair value, we focus on the existing China Huaneng perp., as an anchor, in which the sub-senior differential is around 40bp assuming a relatively flat curve, which would indicate a fair value around 4.2% area.
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