Green bonds are bond products that have been vigorously launched by Shanghai Stock Exchange since the second half of 2016, and bond varieties that are lavishly promoted by regulators such as The People’s Bank of China and China Securities Regulatory Commission. Green bonds are suitable for green environmental protection enterprises. The corporate bonds that were successfully issued by client Beijing Capital Co., Ltd. with the assistance of East & Concord Partners were the first innovative privately offered corporate bonds in the industry, with an issuing scale of RMB 1 billion and a nominal interest rate of 5.5%, presenting obvious advantages over bonds of the same rating under the circumstance where the bond yield kept growing for factors such as retrench of the scale of market allocation and liquidity crunch.

The bonds highlight the innovative concept of “renewable plus green,” and are perpetual bonds. In accounting, they can be counted in equity, and can effectively reduce the issuer’s asset-liability ratio, while the investors can get higher returns from such bonds than from ordinary corporate bonds of the same rating over the same period, realizing win-win between the issuer and the investors.  

For this private placement of bonds by Beijing Capital Co., Ltd., this firm assisted the company in rationalizing the placement procedure and the legal risks in placement application, drafting the legal opinion, and certified the placement of the bonds.