29 July 2021
On June 6, 2021, Qingdao Metro Group Co., Ltd. (hereinafter referred to as “Qingdao Metro”) successfully issued the second phase of its 2021 green medium-term notes (carbon-neutral bonds) (hereinafter referred to as “this issue“). As the first carbon-neutral bond to be issued in Shandong Province, this project attracted wide attention from investors. The project raised 4.2 times of funds at the end, with a coupon rate of 3.58%, hitting a record low for bonds of the same maturity in the Shandong market since 2021.
Qingdao Metro was established in 2012. It is a large state-owned enterprise affiliated with the Qingdao Municipal Government. As the sole entity in the investment and construction of Qingdao’s rail transit system, it is responsible for the planning, investment and financing, bidding and tendering, construction, resource development, and operation of all rail transit engineering projects in Qingdao. Its main business sectors include subway operation, real estate, leasing, and advertising. Qingdao Metro actively responds to a nation's overall deployment and focuses on the development of green rail transit. It incorporates “carbon peaking and carbon neutrality” into the group’s overall strategy for sustainable development. The funds raised in this issuance are all intended to be used for green and low-carbon industry projects with carbon emission reduction benefits. The project could reduce approximately 256.53 tons of carbon dioxide annually and save 133.14 tons of standard coal annually. The successful issuance of the first carbon-neutral bonds in Shandong Province has led to positive attempts to issue similar bonds in the province and will have a beneficial effect on future projects.
JunHe represented the issuer in the issuance and provided services such as due diligence, the drafting of relevant documents, and issuing legal opinions which effectively promoted the progress of this project. Under a very tight schedule, the JunHe team communicated and cooperated efficiently with the other intermediary agencies, and put forward multiple solutions for the legal issues involved in the project, which played a crucial role in the successful completion of this project. JunHe’s professionalism and expertise was highly recognized by the issuers and the other intermediaries.
For further information, please contact:
LIU, Xuezheng, Partner, JunHe
liuxuezheng@junhe.com
