BEWG Issued Green Medium-Term Notes with Long-Term Rights for 2016 2016-11-09
On November 3, 2016, Beijing Enterprises Water Group (China) Investment Limited, a domestic subsidiary of BEWG, successfully issued RMB 2.8 billion green medium-term notes with long-term rights, 5 + N years, with the coupon rate of 3.7%. All of the raised money will be used for the construction of sewage treatment projects.
2016 is the first year after BEWG changed the financing focus to the domestic market. As of November of the year, the bonds issued by BEWG and its subsidiaries is up to RMB 10 billion, of which, RMB 4 billion Panda bonds is the largest public offering bonds of Panda so far, with the five-year interest rate of 3% and seven-year interest rate of 3.33%, achieving the minimum of the equivalent bonds in duration issue; RMB 0.7 billion green Panda bonds, with the eight-year rate of 3.25%, which is the first issue of Panda green bonds publicly issued in the domestic market, and creates the now minimum coupon rate; RMB 2.8 billion renewable green corporate bonds, which is the first issue of renewable bonds publicly issued by the Exchange. The Panda bonds and green Panda bonds issued by BEWG has been given great attention in the capital market, fully showing the recognition of the enterprise strength, operating performance and development prospect of BEWG. The successful issue of these series of bonds added classic cases of financing innovation of the domestic capital market.
As an important part of the green financial system, green bonds enable the corporate bond financing plays a supporting role in promoting green development and energy conservation and emissions reduction, solving serious environmental problems, responding to climate change, and developing the energy conservation and environmental protection industry. By guiding and encouraging social investment, it can speed up the economic structure adjustment and optimization and transformation of the development mode. In August 2016, seven ministries including the People's Bank of China, the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Environmental Protection jointly issued Guidelines for Establishing the Green Financial System. The Guidelines specify to establish and perfect the national uniform green bonds definition standards; define the information disclosure requirements and supervision arrangement; support the competent institutions to issue green bonds and relevant products; improve the review and approval efficiency, and take measures to reduce the financing cost of green bonds. As a domestic, leading, full-industry chain, specialized water environment service provider, BEWG has established the cooperation relationship with China Development Bank, Asia Development Bank, International Finance Corporation (IFC) and other developmental financial institutions at home and abroad. As of June 30, 2016, BEWG has a total of 391 water works (including 282 sewage treatment plants, 100 waterworks, 8 reclaimed water treatment plants and 1 water desalination plant), and has constructed the tap water pipe network of more than 4100 km, with the planned water treatment capacity of more than 26 million tons/day (sum of the signed and bid-wining project capacities). BEWG has participated in nearly 40 large-scale water environment comprehensive treatment projects, with the business covering 26 provincial-level administrative region of China and three overseas countries such as Portugal, Malaysia and Singapore.
