Power utility CLP Power has adjusted the pricing of its US$300 million 10-year note after receiving a strong response. The note was priced at 1.05 per cent over the 10-year US Treasury Note, or at 6.236 per cent. Banks that subscribed for the notes said this compared with the indicative rate of between 1.1 per cent and 1.15 per cent over the US Treasury Note on Monday when the utility started a roadshow for the offering. CLP Power said last night that the offering was almost eight times oversubscribed, largely by Asian and European institutional investors. The amount of the offering remains unchanged. A treasurer at a Hong Kong bank said: 'The response was pretty good. We have subscribed to the note because it is a rare, quality note.' The note is CLP's second global offering since 1996 and is the first tranche of its US$1.5 billion medium-term note programme. Many treasurers still found the pricing of the note attractive in comparison with other utilities' notes such as MTR Corp and Kowloon-Canton Railway Corp in the secondary market. 'The interest rate of CLP Power's note is in line with the secondary market,' one treasurer said. CLP Power managing director Betty Yuen said: 'The success of this transaction reflects the financial community's confidence in CLP Power's strong business outlook through 2012.' Analysts said the note would feed the rising demand for Asia US-dollar notes while allowing CLP Power to raise cheaper funding for its spending programme. They said institutional investors sought Asian-based US-dollar dominated fixed income products as the bankruptcy of United States energy firm Enron had hurt investment confidence. CLP Power's note will help fund its planned HK$30 billion capital spending on power assets between 1999 and 2004. HSBC, Morgan Stanley and Salomon Smith Barney are the joint book-runners of the note offer. The note is rated A3 (positive outlook) by Moody's and A-plus (stable outlook) by Standard & Poor's.