BGE Green Bond

completed

Beijing GeoEnviron Engineering & Technology, Inc. (“BGE” or the “Company”), listed on the Shanghai Stock Exchange (“SHSE”), is a technology-led enterprise specialized in environmental technology research and providing systematic solutions for pollution prevention & control. Its business activities include (1) ownership and operation of hazardous waste management sites and waste to energy (WtE) sites; (2) operation of wastewater treatment facilities and medical waste treatment facilities (3) engineering, procurement, and construction (EPC) contractor for waste/wastewater management projects, landfill projects, and remediation of contaminated sites.  The company has expressed interest to issue its first green bond following the International Green Bond Principles (“I-GBP') of RMB410 million (equivalent of US$60 million approximately) to IFC through a non-public offering on the SHSE (the “Project”). The fund will be dedicated to a greenfield WtE project in Puyang, Henan Project, China (PuyangWtE).  The Puyang WtE project is located in a waste management industry park, adjacent to an existing municipal solid waste (MSW) landfill. The nearest residential area is 700 m away, separated by a planted forest. The site is in a flat barren land area and there are no natural parks or protected areas in the project’s area.  The industry park is in an exclusive industrial zone established in 1996 by Puyang Municipal Government and managed by Puyang Economy and Technology Development Committee under the municipal government. The WtE incineration capacity is 1,000 ton/day with annual electricity generation capacity of 1.28×108 kWh for the first phase, in which 1.03×108 kWh will be sold to the grid. The project includes MSW receiving, storage, incineration, heat recovery/power generation, tail gas scrubbing, and leachate/wastewater treatment. The other waste management facilities in the industry park, besides the municipal landfill, include a medical waste management facility, a food waste management facility, and the site for a planned hazardous waste facility. BGE is not the owner or operator of the existing waste management facilities. The MSW transportation for Puyang WtE will follow the approved existing waste transportation route for the facilities already operational in the industry park. The WtE project construction started in mid 2018 and is expected for operation by the end of 2019.