Dentons advises Beijing Enterprises Water Group Limited on medium-term panda bond issuance

After gaining approval from the National Association of Financial Market Institutional Investors, Beijing Enterprises Water Group Limited ("BEWG", HKSE: 0371) has registered to issue a medium-term panda bond with a total amount of up to RMB 8 billion. On May 24, 2018, BEWG successfully issued two tranches of RMB 3 billion Phase I medium-term panda bonds. The RMB 2 billion tranche is issued at an interest rate of 4.92% with a maturity of 3 plus 2 years, and the other RMB 1 billion tranche is issued at an interest rate of 5.10% with a maturity of 5 plus 2 years. BEWG intends to use the funds raised in Phase I to repay the bank loans and serve as its working capital. The joint lead underwriters included CSC Financial Co., Ltd. and Industrial and Commercial Bank of China Limited.

A Dentons Beijing-based team consisting of senior partner Feng Wang, partner Joanna Liu, and paralegal Jiajing Niu provided legal advises on the issuance.

A panda bond is a Chinese renminbi-dominated bond from a non-Chinese issuer, sold in China's interbank market. BEWG is a company incorporated in Bermuda and listed on the Main Board of the Hong Kong Stock Exchange, and a subsidiary of Beijing Enterprises Group Co., Ltd. specialized on water resources circulation and eco-environmental protection. BEWG is a comprehensive public utility red chip enterprise with investments from the Beijing municipal government, with urban water services and infrastructure as its core businesses. It ranked first among China's Top 500 public utilities and public facilities management and operation companies.