On March 30, Longyuan Power successfully issued the “Renewable Energy Tariff Supplementary Subsidy Phase II Green Asset-backed Special Program (specially for carbon neutrality)” at Shenzhen Stock Exchange. As the first special asset-backed program for Carbon Neutrality in the stock exchange sector, this special program (or this bond) has an IPO size of CNY 1.03 billion. Successful IPO of this bond heralds launch of carbon neutrality bond in ABS market of the stock exchange.
Longyuan Power earnestly implements the State Council’s requirements about work in relation to “Carbon Emissions Peak” and “Carbon Neutrality”, actively puts into practice strategic deployment on ecological progress, and always dedicates itself to exploitation of clean, high-efficiency, and sustainable new energies. Funds raised in this bond will be applied in green and low-carbon (wind power) projects, which will effectively mitigate the influence of delayed subsidy on cash flow. To implement the State Council and the State-owned Assets Supervision and Administration Commission’s overall work requirements (namely, reduction of account receivables and inventories, decrease of debts, and deleveraging), Longyuan Power keeps on making innovations in subsidy and collection mode to revitalize the assets and reduce the size of account receivables and inventories. In addition, Longyuan Power’s investment in new energy industry will help achieve “Carbon neutrality” goal and promote construction of low-carbon and energy-saving ecological system.