On August 17, Sound Beijing Water Service successfully issued its first Green Asset-backed Security, with total amount of RMB 820 million. SynTao Green Finance, as a third party verifier, provided independent green assessment for this ABS. The originator is Beijing Jingyushun Environmental Protection Co., Ltd of the Sound Group. The underlying assets is the company’s earnings from its sewage treatment service for the government of Shunyi District, Beijing.
Use of the proceeds is to repay the debts from financing lease, the second and third phase of the Shunyi District sewage treatment plant reconstruction and expansion project.
This ABS has set up complete measures to enhance credit, including the priority/secondary tranche structure, sewage treatment fee income excess cash flow coverage, and providing liquidity support from Sound Group to the originator. This special plan AA+ as credit rating.
SynTao Green Finance is experienced in green bond verification in pollution prevention, especially in sewage treatment. It has established close cooperative relationship with Beijing Enterprises Water Group, Sound Group and other enterprises. SynTao Green Finance has provided verification for China’s first corporate green panda bond and the first green asset-backed notes (ABN).