Han Kun Hong Kong Law Offices LLP ("Han Kun Hong Kong"), as international counsel to the joint lead managers, has provided English law and Hong Kong law legal services in connection with a CNY3.2 billion 5-year senior unsecured green bond issuance due 2031 (the "Bonds") by Zhejiang Energy International Limited (the "Issuer") with the benefit of a keepwell, liquidity support, and equity interest purchase covenants deed provided by Zhejiang Provincial Energy Group Company Limited ("Zhejiang Energy Group"). The Bonds were issued on 14 July 2026, with a coupon rate of 2.02 per cent, marking the lowest historical issuance coupon rate for same-tenor dim sum bonds issued by provincial-owned enterprises. The Bonds also represent the first issuance of green bonds in China's energy sector that complies with both the International Capital Market Association Green Bond Principles and the Hong Kong Taxonomy for Sustainable Finance (Phase 2A), signifying that Zhejiang Energy Group's energy transition strategy has received broad international recognition.
Zhejiang Province is one of the most economically vibrant provinces in China. Located on the southeastern coast of China and on the southern wing of the Yangtze River Delta, Zhejiang ranked among the top provinces nationwide by GDP in 2025. As a pioneer of China's reform and opening-up and a demonstration zone for common prosperity, Zhejiang boasts a developed private economy, a strong manufacturing base and robust energy demand, making it an important energy consumption market and a hub for clean energy development in China.
Zhejiang Energy Group is the only energy and electric power enterprise under the Zhejiang State-owned Assets Supervision and Administration Commission and is a leading state-owned energy and electric power enterprise in the PRC. This bond issuance features Zhejiang Energy International Limited as the issuer and leverages the international credit strength of Zhejiang Energy Group — namely, its China sovereign-level credit standing and its top-tier credit rating in Zhejiang Province. As a result, the issuance successfully attracted active participation from a broad spectrum of capital market investors. At its peak, total order book size exceeded the offering amount by more than five times, and non-bank investors, including sovereign wealth funds, securities firms, and asset management institutions, accounted for 22% of the final allocation. This demonstrates Zhejiang Energy Group's strong international image and brand influence, while also injecting new momentum into the internationalisation of the Chinese yuan[HK21.1].
Leveraging its extensive experience in the offshore bond market, Han Kun Hong Kong, acting as international counsel to the joint lead managers, provided solid legal support for the successful completion of the project through proactive coordination and the delivery of practical, actionable legal solutions. This project once again demonstrates Han Kun Hong Kong's leading edge in providing integrated, end-to-end solutions for complex matters to clients, even amidst challenging international market conditions.
