On August 28, 2018, DeHeng advised Beijing GeoEnviron Engineering & Technology Inc. ("BGE") in obtaining the Letter of No Objection (LNO) from the Shanghai Stock Exchange on the listing and transferring of green corporate bonds privately issued by BGE, which allows the issuer to issue green corporate bonds with a total value of no more than 1.2 billion yuan to qualified investors through private placement. The bonds were issued in different tranches, of which the BGE's non-public issuance of green corporate bonds (the first tranche) in 2019 was completed on March 15, 2019, with a size of 600 million yuan at a coupon rate of 7%. The term of the bond is 3 years. At the end of the second year of the bond's duration, the issuer has the option to increase the coupon rate and make repurchase from investors.
As the successor to Interlay Engineering Office of the Institute of High Energy Physics of the Chinese Academy of Sciences, BGE was established in August 1992. The A shares issued by BGE were listed on the main board of the Shanghai Stock Exchange in December 2014 (stock code: 603588). BGE specializes in environmental technology research and provides systematic solutions on pollution prevention and treatment. BGE is a cross-regional, cross-industry comprehensive enterprise that focuses on hazardous waste treatment and disposal, integrated treatment of domestic waste industry chain, environmentally sustainable restoration, and industrial wastewater treatment, covering such businesses as construction of circular economy industrial parks.
As the legal counsel for this issuance, DeHeng project team headed by Zhao Yonggang, a partner in the Beijing office and chiefly supported by lawyer Huang Feng and Li Ting, provided professional, high-quality and comprehensive legal services for this non-public issuance of green corporate bonds by BGE, including legal due diligence, issuing legal opinions, drafting and reviewing relevant legal documents, etc., to ensure that the issuance of corporate bonds is lawful and compliant.