Beijing Energy International Successfully Issued Convertible Bonds

Beijing Energy International Holdings Co., Ltd. completed the issuance of US$50 million convertible bonds on June 29, 2021 and became listed on the Hong Kong Stock Exchange the next day. The issue size of the current convertible bond is US$50 million, with an additional issuance shares of US$50 million. It is unrated and unsecured, with a term of 3 years and a coupon rate of 3.8%. The issue price is 100% of the total amount of the confirmed bond principal. The initial conversion price is HK$0.33 per share, a 20% premium to the closing price the day before the issue.

In February 2020, Beijing Energy became the parent company and the largest shareholder, building Beijing Energy International into an international and market-oriented clean energy investment platform, with business covering the whole industrial chain of clean energy such as photovoltaic power, hydropower, wind power, energy storage, integrated energy, etc. Its business extends to the whole country, Australia, Europe, and countries along the Belt and Road. 2020 marked the year of the rebirth of Beijing Energy International. It achieved revenues of more than 2.1 billion yuan and a total profit of more than 340 million yuan, turning loss into profits within one year after reorganization; its total assets was about 26.1 billion yuan, a year-on-year increase of 2.5%. In less than a year, the company completed the optimization of its governance structure. Centering on the goals of improving quality and efficiency, reducing costs and increasing revenue, it realized a turnaround in its performance, which not only demonstrates the ability of the company’s leadership in management and integration in such a short period of time, but also highlights its determination to reform and innovate.

The successful issuance of the convertible bonds suggests that the business development capabilities of Beijing Energy International have regained the recognition of the Hong Kong and international capital markets. It also boosts confidence in the company’s high-quality and rapid development amid the background of striving towards the goal of “emission peak and carbon neutrality”.