On April 11, 2019, China Three Gorges Corporation (CTG) issued green exchangeable bonds worth 20 billion yuan to individual investors online and to institutional investors offline in an inquiry-based allotment manner. This is the first issuance of green exchangeable corporate bonds in the Chinese securities market, and the biggest so far.

The CTG is positioned to be a clean energy group specialized in large-scale hydropower development and operation. Its business scope covers hydropower engineering construction and management, power generation, international investment and project contracting, the development of new energy such as wind power and solar power, the integrated development and utilization of water resources, and technical consultation and services. Thanks to the sustained, rapid development in the past two decades, the CTG has grown into the world's biggest hydropower developer and operator and China's biggest clean energy group. This issuance represented the CTG's first trial of the hybrid securities as the bond financing instrument in the exchange, attracting enthusiastic investors online and offline. The combined amount of subscription online and offline were 110 times the total issuance, and the final coupon rate was 0.50%, the lower end of the inquiry range, the lowest for public exchangeable bonds so far.

As the legal counsel of the issuer, the DeHeng team, composed of lawyers Xu Jianjun, Yang Xinghui, Wang Huakun, and Kang Naixin, offered legal services for the entire project, including but not limited to due diligence, assisting in drafting and revising registration and issuance documents and information disclosure documents, and assisting in exploring and solving legal issues such as stocks swap for cash dividends, and providing legal opinions for the issuance. Their services were acclaimed by the issuer and partner institutions. In the future, DeHeng will continue to maintain long-term partnership with the CTG, help the latter expand the financing channel, and provide comprehensive, reliable and premium legal services for it in its striving to be a world-class clean energy group.

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