DeHeng Advised Beijing Capital Group
on Issuing USD 300 Million Green Bonds
2020-03-18
On March 11, 2020, Beijing Capital Polaris Investment Co. Ltd. (the "issuer"), a wholly-owned overseas subsidiary of Beijing Capital Group ("Capital Group"), issued three-year guaranteed green bonds worth of USD300 million (the "offering"), with a coupon rate of 2.8% and guarantee from Beijing Capital Group. HSBC Bank, CCB International and China CITIC Bank (International) served as joint global coordinators, joint lead agents and joint bookrunners, and other joint bookrunners and joint lead agents included BOC International, Macao Branch of Bank of China, Bank of Communications, ICBC (International), Silk Road International Capital Limited., China International Capital Corporation, Guotai Junan Securities (Hong Kong), China Everbright Bank Hong Kong Branch, Haitong International and CMB International Capital.
The offering set the record-low financing cost in the overseas bond market in the Capital Group's history, with the lowest interest rate for green USD bonds issued by a non-financial Chinese enterprise in the past five years. The bond was also the first innovative bond offered in Hong Kong and Macao at the same time, with double green certifications.
Capital Group is a large state-owned enterprise owned by the Beijing Municipal Government. After years of development, it has built four business pillars: environmental protection, real estate, infrastructure and financial services, and has built some presence in the cultural and creative industry. It has competitive edges in capital operation, industrial collaboration, innovation and R&D, and international cooperation. Based in Beijing, it has a nationwide layout and overseas business, with four listed companies and one National Equities Exchange and Quotations listed company.
To ensure the offering as scheduled, Capital Group overcame the impact of the COVID-19 outbreak, actively organized intermediary agencies for cooperation, and innovatively moved communication, road show and pricing all online. As the Chinese legal counselor for the issuer and Capital Group, DeHeng assisted the Capital Group in completing the update of the USD 1 billion medium-term notes plan and this offering, effectively completed Chinese legal due diligence, demonstration of legal issues, review and revision of issuance documents, issuance of Chinese legal opinions and other specific work within a tight schedule, and provided whole-process legal services concerning Chinese legal issues involved. Despite the coincidence of the Chinese Lunar New Year holiday and the adverse impact of the COVID-19 outbreak during the process of this project, DeHeng actively communicated and cooperated with all parties involved and facilitated the successful completion of the issuance as scheduled.
The DeHeng team, led by partner Bi Xiuli from its Beijing office, with primary support from partner Wang He and lawyer Fang Tianhong, provided professional, comprehensive and high-quality legal services for this project.
