CSG Issues Its First Bond for Rural Vitalization

China Southern Power Grid (CSG) issued its first special bond to finance rural vitalization on April 12.

Valued at 5 billion yuan ($765 million), the bond has a term of three years and a coupon rate of 3.47 percent. It is now the most valuable of its kind in the market.

Capital raised by the bond will be used in power infrastructure upgrading in rural areas in South China's Guangdong, Yunnan, Guizhou and Hainan provinces, as well as the Guangxi Zhuang Autonomous Region, and is expected to support rural vitalization during China's 14th Five-Year Plan (2021-25) period.

Modern power grids are a crucial infrastructure to support rural vitalization.

During China's 13th Five-Year Plan (2016-20) period, CSG invested about 190 billion yuan in renovation and upgrading of rural grids, which helped improve domestic and production conditions in the affected areas.

In the next five years, the company intends to highlight stabilization of rural power supply, upgrade power infrastructure, lift electrification levels and increase the intelligentization of the rural grid, establish clean and low-carbon rural energy supply system and improve equal access to urban and rural power supply services.

CSG aims to primarily complete modern rural grid construction, elevate power service and meet power demands in these areas by 2025.

It will also make efforts to boost new energy in rural areas and give it a big role in rural energy consumption.

(Executive editor: Wang Ruoting)