Han Kun advises on the debut listings of new energy REITs in China
March, 2023 - Beijing, Mainland China
On March 29, 2023, the first batch of new energy REITs made their debut for public trading on the Shanghai Stock Exchange. The CSC SPIC New Energy REIT and the AVIC BJEI Photovoltaic REIT are expected to raise RMB 7.84 billion and RMB 2.935 billion, respectively. The underlying assets of the CSC SPIC New Energy REIT, sponsored by State Power Investment Corporation Limited (SPIC), are offshore wind power and support operations and maintenance stations located in Yancheng, Jiangsu Province, with a total installed capacity of 500 MW. The underlying assets of the AVIC BJEI Photovoltaic REIT, sponsored by Beijing Energy International Holding Co., Ltd. ("BJEI"), are the 300 MW photovoltaic power station project in Yulin, Shaanxi Province and the 100 MW photovoltaic power station project in Suizhou, Hubei Province. The listings mark a milestone for China's REITs market, blazing a new trail to revitalize existing assets of the thriving new energy industry and injecting stronger momentum into new energy investment, which is of great significance for China to achieve its green transformation goals.
Han Kun has acted as legal counsel throughout the listing process, providing comprehensive legal services, effectively addressing concerns related to industry-specific issues such as electricity subsidies, payback periods, lease of collective land, and rights to the use of marine areas, and assisting in the completion of relevant formalities for the project.
Han Kun has years of extensive experience in real estate and infrastructure-related investments and financings. The firm is a market leader in handling deals that involve project investment, development and construction, mergers and acquisitions, fund establishment, private and public financings, etc., and has engaged in many landmark transactions in the field. Since China's launch of the pilot scheme for REITs in the infrastructure sector, Han Kun has contributed comprehensive legal services to the successful listing of more than ten infrastructure REITs.
