Hanwha Energy USA’s USD 300 million 3-Year 144A/Reg S Green Bond Offering (Debut Green Bond Offering)

On 23 July 2019, Hanwha Energy USA Holdings Corporation (“HEUH”) successfully priced its 144A/Reg S Green Bond Offering (the “Offering”) of USD 300 million 3-year senior unsecured notes, unconditionally and irrevocably guaranteed by the Korea Development Bank (“KDB”). The 3-year fixed rate notes were priced at 70 basis points over the 3-year US Treasuries (Coupon: 2.375%) and were listed on Singapore Exchange. The notes are expected to be rated “Aa2” by Moody’s. The Offering is HEUH’s first-ever USD bond issuance in the international debt capital markets.

HEUH is a leading developer of solar power projects of solar power primarily in North America, wholly owned by Hanwha Energy, a Korean independent power producer. Hanwha Energy is a member company of the Hanwha Group, one of the largest conglomerates in Korea.

HEUH, together with other affiliate companies in the Hanwha Group (namely, Hanwha Chemical, which manufactures the polysilicon needed for solar panels, and Hanwha Q Cells, which manufactures solar modules), is able to provide a fully integrated photovoltaic value chain to its customers. As of the date, total installed capacity of solar power projects developed and sold by HEUH is approximately 800 MWdc and total installed capacity of solar power projects being developed is approximately 9,300 MWdc.

HEUH plans to allocate the net proceeds towards the financing or refinancing, in whole or in part, of new or existing renewable energy projects (“Eligible Green Projects”) in accordance with HEUH’s Green Bond Framework established in July 2019 with the external review from Sustainalytics, leading global provider of ESG research. More specifically, HEUH intends to allocate the proceeds to expenditures related to the development, construction, installation and maintenance of solar energy production units and related transmission and distribution networks. All intended investments will be exclusively for solar energy.

The Offering was actively subscribed by global fixed income investors on the back of the scarcity value of “dark green” bond, superior credit of KDB as the guarantor (rated “Aa2” Stable by Moody’s and “AA” Stable by S&P), and well-recognized brand awareness of the Hanwha Group.

Citigroup, Crédit Agricole CIB, KDB (in its capacity as a joint lead manager) and Standard Chartered Bank acted as the joint bookrunners and joint lead managers for the Offering. HEUH received over USD 2.3 billion order (at reoffer) from 93 accounts. Geographically, the allocations were split 49% into the US, 47% Asia and 4% EMEA. By investor type, funds were allocated 60%, banks 15%, pensions and central banks 15%, corporate treasury 9%, and 1% designated to private banks and others. Books were well received with strong demand from global investors across regions including quality US and Asian accounts.

For any deal related queries, please contact directly to: Mr. Tony Wonyoung Jung, CFO, Hanwha Energy via +82 44 850 3430 (wonyoung@hanwha.com) or Mr. Heeseung Jang, Finance Team Leader, Hanwha Energy via +82 44 850 3431 (safe77@hanwha.com) or Mr. Jason Do Yeop Kim, Director, Head of Business Planning & Strategy, Hanwha Energy USA via +1 949 748 5996 ext 677 (jason.kim@174powerglobal.com).

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