China’s First “High-growth Green Debt Financing Plan for SMEs” Saw a Successful Issuance

“Just in time! This fund was delivered to our account two days ahead of the maturity date of our bank loan, and prevented the adverse impact of overdue loan on the credit records of our company, perfectly realizing the seamless connection of loan renewal funds,” said a person in charge of Uni-Rising.

On May 23, the first working day after Haidian District upgraded epidemic restrictions and all staff were required to work from home, Uni-rising received 35 million yuan.

It is reported that the first phase of “2022 Green Debt Financing Plan (High-growth Debt) for Uni-Rising (Beijing) Technology Co., Ltd.” was successfully issued and raised 35 million yuan, with a maturity of 3 years. ZGC Guarantee Company provided guarantee and issuance services for this bond.

This is the first option-embedded “Debt Financing Plan for High-growth Green SMEs” issued by Beijing Financial Assets Exchange. It is also a direct financing product for high-growth innovative SMEs in Zhongguancun that has been successfully issued amid the upgraded epidemic prevention and control measures.

The plan provided financing guarantee and credit debt support with flexible maturities for enterprises to meet their urgent need of funds and ensure them to ride out the epidemic crisis smoothly.

When it comes to direct financing, technology-based SMEs have long faced the challenges of few financing channels, weak market investment willingness and low overall rating.  In a capital market where institutions mainly serve large enterprises, few institutions truly understand and are willing to serve MSMEs.

In June last year, China’s first “High-growth Green Debt Financing Plan” was successfully issued, which opened up a green channel for qualified sci-tech MSMEs in the mode of “Guarantee + Issuance”.

By introducing a guarantor, the plan improves the confidence of investors in investing on SMEs and alleviates the private SMEs’ difficulties in obtaining medium- and long-term direct financing. Compared with other medium- and long-term financing methods, the overall financing costs of high-growth debt can be reduced by nearly 30%.

This time, the first option-embedded “Debt Financing Scheme for High-growth Green SMEs” is issued. The “option” means that the financing firm, within the issuance period of 3 years, has the right to repay the debt in advance and redeem the bond at the end of each year.

As a National High-tech Enterprise, Zhongguancun High-tech Enterprise, and Beijing Specialized and Sophisticated SME, Uni-Rising is focusing on the utilization of surplus heat, pressure and gas in the energy conservation and environmental protection industry, with its business highly aligned with the national strategic industrial orientation and polices of energy conservation and environmental protection.  

Uni-Rising has to invest heavily in the utilization of waste heat of thermal power plant, energy conservation and emission reduction, and its own future growth. At the same time, the company has a bank loan due soon.

According to Uni-Rising, it is not easy for SMEs to successfully issue bonds during the epidemic period. Moreover, ZGC Guarantee customized an offering plan with a redemption option for Uni-Rising, and deliberately designed related clauses, helping it use funds flexibly and reduce financing costs.

As a medium- and long-term financial support, the bond not only solve the problem of loan renewal, but also greatly mitigate its financial pressure, enabling the company to build and operate green projects more easily in the future.

It is said that ZGC Guarantee has overcome various inconveniences caused by the epidemic controls. It simplified the business process through remote due diligence, approval, signing and other measures, successfully completed the procedures of guarantee, issuance materials preparation, fund receipt, register and listing, and so on.

Against the background of all staff working from home in Haidian District, the bond was successfully issued through green channel and online services, and the funds reached the enterprise account timely on the first working day.  

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