Zhejiang zheneng electric power raised Rmb 10bn (US$1.63bn) last week from the sale of six-year convertible bonds, with the book about 116 times covered. About 99.29% of the CBs went to institutional investors and just 0.71% to retail investors. The coupon is 0.5% for the first year before it steps up to 2.5% in year six. The initial conversion price has been set at Rmb5.66, or at a premium of 1.80% to the pre-deal spot. The unsecured bonds scored an AAA rating from Chengxin. CICC and Morgan Stanley Huaxin Securities were joint sponsors and joint bookrunners with Citic Securities. Proceeds will be used to construct five power plants.
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