China’s Main Power Firm Shifts to Longer Debt Amid Project Boom
- State Grid priced 25 billion yuan of five-year bonds Tuesday
- Recent power crunches in China have underscored rising demand
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State Grid Corp. of China, the world’s biggest utility, is adding to its biggest pile of longer-term bond issuance in a decade to help fund major construction projects, as authorities pump trillions of yuan into infrastructure and try to avert more power shortages.
The company, which operates 88% of the country’s grid system, priced 25 billion yuan ($3.6 billion) of bonds due in 5 years in several parts Tuesday, according to filings with Chinamoney.com.cn. That brings its sales of notes due in at least five years to 50 billion yuan in 2022, the most since 2012, when it issued 55 billion yuan of such securities, according to data compiled by Bloomberg.