CTG’s listed power arm CYPC issues RMB 2.5bn bonds to fight epidemic

China Yangtze Power Co., Ltd. (CYPC), the listed power arm of China Three Gorges Corp (CTG), issued its first batch of 2020 medium term notes (MTN) on March 13 worth RMB 2.5 billion with a coupon rate of 2.95 percent and a maturity of 3 years.

The bond was oversubscribed 3.1 times with a total value of RMB 7.8 billion.

To combat COVID-19 epidemic and boost financial support in areas hit by the epidemic, China’s National Association of Financial Market Institutional Investors (NAFMII) recently launched a dedicated Novel Coronavirus Prevention Bond initiative, which helps firms in epidemic-hit communities and companies who will use the proceeds in epidemic control and prevention to raise funds through bond issuance.

CYPC’s issuance of the epidemic bond demonstrates the recognition from regulators and investors of its good credit standing.