Herbert Smith Freehills advises Huaneng Power on HK$3.1 billion H-share placement

Herbert Smith Freehills has advised Huaneng Power International Inc., one of China’s largest listed power producers, on its HK$3.14 billion H-share placement.

The 365,000,000 H-shares placed by Huaneng Power represented 10.27 per cent of the size of its 3.55 billion total existing H-shares issued on the Hong Kong Stock Exchange. The net proceeds from the share placement are intended to be used for supplementing the company’s working capital.

Beijing-based Huaneng Power is the listed unit of the mainland’s largest power producer, China Huaneng Group. The company is mainly engaged in developing, constructing, operating and managing large-scale power plants throughout China. Huaneng Power’s A-shares and H-shares are listed and traded on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively.

China International Capital Corp and Bank of America Merrill Lynch acted as joint global coordinators, joint bookrunners and joint placing agents on the deal.

The Herbert Smith Freehills team on the deal was led by Beijing Office Head Tom Chau. Hong Kong-based U.S. securities partner Kevin Roy also advised on the deal. Both Tom and Kevin were supported by Beijing Counsel Wang Zhong and associate Isaac Chen.

Tom Chau commented:

“We have been working with Huaneng Group since the 1990s and have seen the company expand and grown very fruitfully over the past few years. We would like to congratulate Huaneng Power on its latest successful major share placement. The market has picked up quite significantly in the past six months and we are starting to see a lot of new investor and issuer appetite, especially from Chinese companies in issuing both shares and debt in Hong Kong. The pipeline is looking good and we look forward to assisting our clients on their capital raising deals in the months to come.”

Last year, Herbert Smith Freehills advised Huaneng Power on its RMB1.5 billion Regulation S offering of three-year fixed rate bonds due 2016 on the Hong Kong Stock Exchange. In 2010, the firm also advised Huaneng Power in relation to its non-public issue of RMB8.556 billion A-shares and HK$1.988 billion H-shares.


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