On November 24, Yankuang Group successfully issued the fifth tranche medium-term notes (MTN) in 2020 valued RMB2 billion with a coupon rate of 4.46%. This note became the first medium-term note issued by a coal company after Yongcheng (Yongcheng Coal Electricity Holding Group Company Limited) Bond default. The issuance secured great interests from investors, with a subscription multiple of 1.865 and marginal oversubscription ratio of 4.5 times, reflecting the public market’s full recognition of Yankuang Group’s operating and management performance. Furthermore, the issuance also reflects the success of the Group's resource integration and business transition.
The issuance were jointly led by China Minsheng Bank and GF Securities，and all the proceeds will be used to repay the Group's interest-bearing debts. The successful issuance of the MTN has broadened Yankuang’s financing channels, reduced its financing costs, and optimizing the debt portfolio. It further released the potential of Yankuang’s capital synergy, enhanced its capital market influence, and provided long-term capital guarantee and financial support for the Group's sustainable and steady growth.
Accordng to the prospectus, Yankuang Group's net profit attributable to the parent company in 2019 and the first three quarters of 2020 will be RMB1.899 billion and RMB1.457 billion respectively. Based on the "Merger Agreement between Shandong Energy Group Co., Ltd. and Yankuang Group Co., Ltd.", Yankuang Group changed its name to "Shandong Energy Group Co., Ltd." as the surviving company. Starting from the closing date of this merger, the assets, liabilities, business, personnel, contracts, qualifications and all other rights and obligations of Shandong Energy and Yankuang Group before the merger, as well as equity of subsidiaries of either Shandong Energy or Yankuang Group, will be inherited, undertaken or enjoyed by the surviving company. As to date, the merger and restructure goes well and almost finished. The consolidated corporate statement for the restructured entity will be issued soon.