Carey Olsen Advised Beijing Energy On $40 Million Green Bond Issuance
Carey Olsen Advised Beijing Energy On $40 Million Green Bond Issuance
Carey Olsen's corporate team in Hong Kong has advised Beijing Energy International Holding Co. Ltd (Beijing Energy International), a leading global eco-development solutions provider, on the Bermuda law aspects of a significant $40 million green bond issuance.
Beijing Energy International is primarily involved in project investment and operation in clean energy sectors such as photovoltaic power generation, wind power, hydropower, as well as hydrogen energy, energy storage, and integrated energy. Its operations span across 31 provinces, municipalities, and autonomous regions in China, as well as overseas new energy markets including Australia, Vietnam, and RCEP countries.
The bond, successfully issued on 2 April 2024, features a two-year term and an impressive coupon rate of 2.70%. The issuance was oversubscribed by 3.04 times, indicating significant investor interest and confidence in the company's green initiatives.
This issuance, conducted under the green asset-backed special plan (ABS), aims to support rural revitalization as part of Beijing Energy International's phase-I supply chain financing. It not only provides a stable financial foundation for the company's continued development but also underscores its commitment to sustainable and environmentally friendly practices.
China Merchants Asset Management acted as the manager for the issuance, with China Merchants Securities serving as the underwriter.
The Carey Olsen team, led by partner Michael Padarin and associate Calvin Lee, provided expert legal counsel throughout the process.
Michael Padarin expressed satisfaction stating, "We are pleased to have been able to assist Beijing Energy International on this deal, which is the first overseas entity supply chain project led by a state-owned enterprise in the electric power and green financing markets. This deal showcases the strength of Carey Olsen's global debt capital markets team, and particularly our Hong Kong office's growing expertise in handling complex transactions like this."
