ENN Energy offers to early redeem its 2030 bonds, leading to a substantial increase in bond prices 新奧能源公布將提前買回2030年期債券,當天債券價格顯著上漲

ENN Energy offers to early redeem its 2030 bonds, leading to a substantial increase in bond prices.

Corporate action
ENN Energy announced that it plans to repurchase up to $150 million in cash of its 2.625% senior unsecured US dollar-denominated notes due 2030. The tender offer commenced on November 8 and will expire on December 8 this year, unless the company decides to extend or terminate it at its sole discretion. As of now, the outstanding principal amount of the notes is $750 million.

The company stated that the tender offer is part of its balance sheet management activities, aimed at reducing the amount of debt denominated in non-functional currencies, to mitigate exchange rate risk and optimize its capital structure. According to the semi-annual report as of the end of June this year, ENN Energy has approximately 10.9 billion Chinese yuan in cash on its books.

After the announcement of the tender offer on November 8th, the prices of the company’s outstanding 2027 and 2030 US dollar-denominated bonds both increased, while the yields decreased significantly. The secondary market trading is as follows:

• ENN Energy (XINAOG) 2.625% 2030 bonds trade near 82.29 (+1.52% from a day ago), with a yield of about 5.79% (-25bps from a day ago).
• ENN Energy (XINAOG) 4.625% 2027 bonds trade near 96.76 (+0.4% from a day ago), with a yield of about 5.65% (-12bps from a day ago).

Company Description
ENN Energy (formerly XinAo Gas) is one of the first non-state-owned piped gas distributors in China. The core business is to operates and manages gas pipeline infrastructure, and sells and distributes piped gas (liquefied petroleum gas, or LPG) in China. ENN Energy currently holds credit ratings of Moody’s Baa1 Stable / S&P BBB+ Stable / Fitch BBB+ Positive.

新奧能源公布將提前買回2030年期債券,當天債券價格顯著上漲

公司活動
新奧能源發布公告指出,計畫以現金回購最多1.5億美元,將於2030年到期、票息2.625%的優先無擔保美元計價債券。收購要約自11月8日開始,除非公司全權酌情決定延期或提早終止,否則將於今年12月8日結束。截至11月8日,此券尚未償還的本金總額為7.5億美元。

公司表示,提出收購要約屬於公司資產負債表管理活動的一部分,旨在減少尚未償還的以非功能性貨幣計價的債務,以降低滙兌風險並優化公司的資本結構。依據截至今年6月底的半年報,新奧能源帳上有約109億人民幣之現金。

11月8日提前回購債券訊息公布後,目前公司流通在外2027年、2030年兩檔美元計價債券價格皆顯著上漲、收益率大幅走低,當天次級市場交易收盤如下:

• 新奧能源(XINAOG)2.625% 2030年券價格約82.29,較前一天上漲約1.52%;收益率約5.79%,較前一日走低約25bps
• 新奧能源(XINAOG)4.625% 2027年券價格約96.76,較前一天上漲約0,4%;收益率約5.65%,較前一日走低約12bps

公司簡介
新奧能源(前身為新奧燃氣)是中國首批非國有的管道天然氣分銷商之一,主要經營和管理天然氣管道基礎設施,並在中國銷售和分銷管道天然氣(液化石油氣,或LPG)。新奧能源目前信評為Moody’s Baa1 穩定 / S&P BBB+ 穩定 / Fitch BBB+ 正向。