China Yangtze Power Co., Ltd. (“Yangtze Power”) successfully offered and listed global depositary receipts (“GDR”) on the London Stock Exchange (“LSE”) on September 30, 2020 at a price of US$26.46 per GDR (this “Offering”). In case of full exercise of all over-allotment options, the number of GDR offered will be 76 million, representing 760 million underlying A shares, with the total amount raised exceeding US$2 billion.
This Offering creates a number of firsts under the Shanghai-London stock connect mechanism:
The first to offer GDRs in accordance with the Rule 144A;
The first to obtain the green economy logo; and
The largest GDR offering in terms of financing size under the Shanghai-London stock connect mechanism.
Yangtze Power is mainly engaged in hydropower generation, electricity distribution and sales as well as operation, management, consulting, investment and financing of overseas power stations, with presence in Germany, Peru, Brazil, Malaysia and other countries throughout the world. Yangtze Power is the largest listed power company in China and the largest listed hydropower company in the world, owning all of the power generation assets of four hydropower projects located along the Yangtze River, namely the Three Gorges Project, the Gezhouba Project, the Xiluodu Project and the Xiangjiaba Project.
JunHe acted as the PRC legal counsel to the issuer in the project. The schedule of the project was tight, only five months from kick-off to successful listing of the GDRs. Under such a tight schedule, JunHe overcame the impact of adverse factors such as the COVID-19 epidemic and provided quality, prudent and efficient legal services, including carrying out the domestic legal due diligence, issuing the PRC legal opinion to be submitted to the regulatory authorities, reviewing the company’s internal decision-making documents, domestic regulatory examination and approval procedures and transaction documents, preparation of certain sections of the prospectus as well as preparation and publication of domestic and overseas announcements, helping Yangtze Power succeed in offering and listing the GDRs on the LSE. JunHe with its consistent rigorous and efficient working style and meticulous and diligent service attitude has won the recognition and trust of the client and other intermediaries.