Baker & McKenzie Advises China Investment Corporation on its Pre-IPO Investment in Huaneng Renewables Corporation Limited
Deal Announcement
10 June 2011
Hong Kong, China, 10 June 2011 – Baker & McKenzie recently advised Best Investment Corporation, a wholly-owned subsidiary of China Investment Corporation (”CIC”), China’s sovereign wealth fund, on its subscription of USD60 million worth of H shares in the global offering of Huaneng Renewables Corporation Limited (“Huaneng”), a leading renewable energy company in the PRC, with a particular focus on wind power. CIC’s investment represents approximately 7.51 percent of the global offering of Huaneng.
Huaneng has entered into placing agreements, in an aggregate amount of USD415 million, with a select group of cornerstone investors. Along with CIC, other cornerstone investors include State Grid International Development Limited; Sennett Investments (Mauritius) Pte Ltd, a wholly-owned indirect subsidiary of Temasek Holdings (Private) Limited; CSR (Hong Kong) Company Limited; Standard Chartered Private Equity (Mauritius) III Limited; Bank of China Group Investment Limited; China Huadian Hong Kong Company Limited; Angang Group Hong Kong Co., Limited; Fubon Life Insurance Co., Ltd; GE Capital Equity Investment Ltd.; WLR China Energy Infrastructure Fund L.P.; China Chengtong Hong Kong Company Limited and AEP Investments (Mauritius) Limited.
Morgan Stanley Asia Limited acted as the sole global coordinator of the global offering. Morgan Stanley Asia Limited, China International Capital Corporation Hong Kong Securities Limited, Goldman Sachs (Asia) L.L.C. and Macquarie Capital Securities Limited acted as the joint sponsors, joint bookrunners and joint lead managers on the global offering.
The Baker & McKenzie team was led by Beijing-based securities partners, Jackie Lo and PH Chik.
This is the second investment the Firm has advised CIC on over the past two months. In April, the Baker & McKenzie securities team advised CIC on its agreement with Semiconductor Manufacturing International Corporation (“SMIC”), the largest semiconductor foundry in the PRC, to subscribe for SMIC convertible preferred shares and warrants preferred shares worth USD300 million. The preferred shares, upon conversion and exercise in full, represent about 13 percent of the issued share capital of SMIC. SMIC is listed in Hong Kong and New York.