On March 8, 2022, China National Nuclear Corporation (CNNC) successfully completed the book building of its public issuance of carbon neutrality green bonds (Series 1) to professional investors. The RMB 1 billion 2.84% variety I of the Bonds “GC CNNC 01” mature in three years, with a subscription multiple of 6.07, and the RMB 2 billion 3.45% variety II of the Bonds “GC CNNC 02” mature in five years, with a subscription multiple of 3.60. This issuance received an enthusiastic response from investors and marks the lowest rate of bonds in the market of the same variety, with the same maturity. The funds raised will be used to develop wind power, photo electricity and other green and low-carbon projects of the Group to ensure the development of its green and low-carbon industry.
CNNC is a large wholly state-owned enterprise under the direct management of the central government and subject to direct regulation by the State-owned Assets Supervision and Administration Commission of the State Council. The successful bonds issuance develops the concept of “carbon peaking and carbon neutrality”, innovates financing tools, and promotes the green and low-carbon credentials of the group.
Acting as the counsel to the Issuer, JunHe overcame the adverse effects of Covid-19 and other factors, to efficiently deliver quality and rigorous legal services. This included conducting comprehensive legal due diligence and issuing PRC legal opinion. JunHe’s team assisted the company in registering with the China Securities Regulatory Commission, and the public issuance of corporate bonds of up to RMB 20 billion (inclusive) to professional investors and to successfully complete the initial issuance. JunHe’s team was highly trusted and unanimously affirmed by the client and the other intermediaries for its solid work attitude and professionalism.
Partners YUAN, Jianan and YU, Yongqiang (YY) led the firm’s deal team with the support of Partner YE, Junli (internal control).