Green Bond Fact Sheet

Chongqing Kangda Environmental Protection Industrial Co.,Ltd

Date: 13-Aug-2018

Issue date: 10-Aug-2018 Maturity date:10-Aug-2033 Tenor: 15 years
Issuer Name

Chongqing Kangda
Environmental
Protection Industrial
Co.,Ltd

Amount Issued

CNY360m(USD52.7m)

Country of risk

China

CBI Database

Included

Issuer Type1

Non-Financial
Corporate

Bond TypeABS

Green Bond Framework

N/A

Second party opinion

CCX (G-1)

Certification Standard

N/A

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☐ Water distribution☐ Water treatment☒ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

Chongqing Kangda Environmental Protection Industrial Co.,Ltd is founded in 1992. It
has developed into a wholly foreign-owned enterprise whose main businesses
include equity investment, water project investment, municipal engineering
construction and environmental production. The company manages nearly 30
holding companies and sewage treatment stations. It has a daily wastewater
treatment capacity of 1.28 million tons, and 1 million tons of capacity is underconstruction.

Firsts, records andcertifications
Proceeds description

The green ABS is secured on wastewater treatment receivables. More specifically,
the deal securitises the next 15 years’ worth of receivables from 5 subsidiaries ofChongqing Kangda Environmental Protection Industrial Co., Ltd.
The proceeds will be used to construct new and to upgrade existing wastewater
treatment stations for its subsidiaries. The investment targets the reduction oflocal pollution, an improvement in the surrounding environment and a reduction inwater usage.

Climate Bonds view

Underwriters
Deal comments
Credit Rating
Pricing summary

This is the first green ABS deal in Chongqing, which expands the market. We alsofavour deals which use green revenues and assets as security to finance investment
in green assets: this deal couples refinancing with a commitment to additional
green asset financing. We hope to see comprehensive post-issuance reporting andmore information being disclosed. As an example it would be helpful to understandhow treated water is used and whether recycled water is used for irrigation andindustrial purposes rather than treated, potable water.
Bohai Huijin Securities

Investors summary
1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign