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Dacheng Advises Jingneng Power on RMB3bn Corporate Bond Issue

In January and August, 2014, Beijing Jingneng Thermal Power Co., Ltd. (“Jingneng Power”) issued two tranches of Renminbi-denominated corporate bonds worth RMB3bn with a 1.5-year term and a 3-year term respectively. 

A team composed of senior partner Song Yunfeng, associate Long Zhifeng and trainee Liang Huijuan acted as legal counsel for Essence Securities, the sponsor and lead underwriter for the bonds. 

Jingneng Power (stock code: 600578), owned by Beijing Energy Investment Holding Co., Ltd. and Beijing Jingneng International Engergy Co., Ltd., is the direct financing outlet for Beijing Energy Investment Holding Co., Ltd. and the listing platform for its coal power assets. 

As of the first half of 2014, Jingneng Power owned RMB33.066bn worth of assets, RMB13.675bn worth of shares outstanding and RMB1.444bn in net profits. It is the controlling shareholder of nine power generation enterprises, including Inner Mongolia Daihai Power Generation Co., Ltd., and holds equity in another nine energy enterprises, including Inner Mongolia Datang International Togtoh Power Generation Co., Ltd.. Therefore, it has 5890MW of installed capacity in operation and 6850MW of installed capacity computed on the basis of equity. Jingneng Power has, for a few consecutive years, been recognized as an outstanding performer in China’s electric power sector, a creditable work unit by Beijing Municipal Association for Science and Technology and a Grade-A taxpayer in Beijing.