On March 30, SDEG successfully issued the first sustainable development-linked bond (hereinafter referred to as "development bond") in Shandong Province for the year 2022, with a total financing amount of RMB2 billion, which is comprised of a RMB1 billion of 3-year-term bonds at a coupon rate of 3.44% and a subscription ratio of 2.7 and a RMB1 billion of 5-year-term bonds at a coupon rate of 4.09% and a subscription ratio of 1.5. As compared with the recently issued bonds of the same maturity in the energy sector, the development bond has set a new low in terms of coupon rate and a new high in terms of subscription ratio, which showcases that SDEG has been highly recognized by the capital market. SPD Bank Jinan Branch serves as the lead underwriter and book-running manager for the issuance, and PSBC Shandong Branch serves as the co-lead underwriter.

The performance assessment indicators for this “development bond” are new energy installed power generation capacity and the volume of gangue utilization for mine backfilling. The assessment period is from 2022 to 2024. It is expected that by the end of 2024, the new energy installed capacity shall not be less than 2.3 million kilowatts and the gangue utilization for mine backfilling shall reach 9.2 million tons.

SDEG will use the financing capital from the development bond as 5-year medium and long term funds, to effectively ease short-term debt pressure, and optimize the debt financing structure and reduce financing costs.