China’s CATL announces $1.5 billion overseas bond issuance

Shanghai (Gasgoo)- Chinese battery giant CATL announced on Sept. 12 a successful issuance of $1.5 billion in senior dual-tranche fixed rate bonds in overseas market, which is regarded as part of efforts to improve its global deployment.

The issuer is Contemporary Ruiding Development Limited, a wholly-owned subsidiary of CATL. CMB International (CMBI) acts as Joint Global Coordinator and Joint Bookrunner on this transaction, according to CMBI.

(Photo source: CATL)

The underwriter of the bond issuance, namely, CATL, is assigned a Baa1 rating by Moody's, a BBB+ by Standard & Poor's and a BBB+ by Fitch. The bond rating is at Baa1 by Moody's, BBB+ by Standard & Poor's and BBB- by Fitch, said CATL.

The money to be raised in the 5-year and 10-year tranches are expected to amount to $1 billion and $500 million respectively, with coupon rates of 1.875% and 2.625%.

The new bond issuance is CATL's premiere in overseas capital market, which is expected to diversify the company's financing channels and perfect its fundraising structure, so as to provide powerful support to CATL's global strategic deployment.

The battery supplier announced in mid-April it planned to issue no more than $3 billion in bonds in overseas markets, which was significantly higher than the $800 million it said it planned to raise in last November with an overseas bond issue.

Proceeds from the bond sale would be used to fund overseas plant construction, repay bank loans and cover general operational expenses, CATL said then.

In October 219, CATL broke ground on an EV battery plant in the German state of Thuringia to supply BMW Group and other European automakers. The Germany-based plant is set to start operation next year.