On May 13, ENN shares (stock code 600803.SH) announced that the company had successfully issued a 5-year bond with a maturity of US$800 million with a coupon of 3.375%.

The issuance was enthusiastically sought after by the international capital market. Before the start of the transaction, ENN’s core management team had a two-day intensive telephone conference to exchange in detail the company’s credit and financial highlights and development strategies with nearly 200 high-quality investors from Asia, Europe and the United States.

Under the strong traction of the national strategic goal “Peak carbon emissions & carbon neutrality” and corresponding macro policies, natural gas, as an important low-carbon energy to support the realization of carbon neutrality, has excellent market competitiveness and sustained strong growth potential. Meanwhile, the market-oriented reforms marked by the National Pipe Network Company further stimulated the vitality of the industry and improved the efficiency of resource allocation.

In the context of the natural gas industry ushering in a period of major development opportunities and a window of development, ENN has industrial innovation practice and resource experience accumulation more than 20 year, and its strategic layout in industrial integration, safe and efficient operation capabilities, abundant cash flow and excellent debt structure, continuously improving corporate governance level and international credit rating. In addition, the company has launched a new strategy, as industrial intelligent ecological operator to seize development opportunities, which leads the industrial digital intelligence development. The predictable and ideal return on investment has leveraged excess demand from global investors.

In the Asian cross-rated issuance (only Fitch rated as BBB-rated), the issuance set a precedent for pricing using T+ spreads mode for the first time. The bond was launched with the initial price guidance range of T+320, and strong investment intentions made the transaction successful. It was narrowed by 55 basis points and finally priced at T+265 basis points, making it the most narrowed 144A transaction in Asia (except Japan) this year. The transaction yield is the lowest level among the same 5-year bonds.

The transaction received a total of more than US$3.2 billion in orders from 174 investors, with an oversubscription multiple of 4 times. In terms of the distribution of placement investors, 35% of investors are from the United States, 47% are from Asia, and the remaining 18% are from Europe and the Middle East. In terms of types of placement investors, 84% of investors are from fund management companies, and 8% are from banks. The remaining 8% comes from insurance, retirement funds and sovereign funds.

With thistransaction ENN get the lowest yield on US dollar bond. ENN not only obtains an ideal financing target, but also updates the company’s development vision, strategic layout, operation and sound credit after the restructuring to global bond investors, it helps ENN to continuously improve its image in the international capital market.