Dentons advises Beijing Enterprises Water Group Limited on issuing 2018 Medium-term Panda Bonds (Series 2) in China inter-bank market

On July 20, 2018, Beijing Enterprises Water Group Limited ("BEWG", HKSE: 0371) successfully issued RMB 3 billion Medium-term Panda Bonds (Series 2) (the "Bonds") in China inter-bank market through a Book building process. Previously, after gaining registration approval from the National Association of Financial Market Institutional Investors, BEWG has registered to issue medium-term panda bonds with a total quota of up to RMB 8 billion. The Bonds were issued as the second series in 2018. The credit rating assigned to the Bonds is AAA. It is issued in two tranches: the RMB 1 billion tranche is issued at an interest rate of 4.45% with a maturity of 3 plus 2 years, and the other RMB 2 billion tranche is issued at an interest rate of 4.72% with a maturity of 5 plus 2 years. CSC Financial Co., Ltd. and Industrial and Commercial Bank of China Limited also served as the joint lead underwriters for this series.

A Dentons Beijing-based team, consisting of senior partner Feng Wang, partner Joanna Liu, and trainee Jiajing Niu, provided bilingual legal advices in both English and Chinese 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.

BEWG aims to use the proceeds to optimize its debt structure, reduce financing costs, and reserve sufficient funds for its strategic development, so as to continuously promote the healthy and rapid development of its eco-friendly businesses such as water treatment and comprehensive water environmental governance.