Midea Issues the First Green Bond, Setting a "Record Low Issue Margin" for Domestic Chinese Industries

FOSHAN,China,Feb. 18,2022 -- On February 16,2022,Midea Group Co.,Ltd. ("Midea",stock code: 000333.SZ)completed USD 450 million 5-year unsecured green bonds,issued at T+98 base points,setting a record of the lowest issuance margin for international U.S. dollar bonds with the same rating with similar levels of maturity across the industry.

The launch of Midea's green bonds has drawn widespread attention from investors across the market. International high-level green investors joined Midea's roadshow launch event,enthused by Midea's technology-driven,multi-industry,global operations and credit quality growth. Midea hadreceived multiple intentionalorders by the end of the roadshow's first day. After the public filing was announcedon the morning of February 16,orders peaked at USD 2.4 billion,eight times the original offering size. Due to the overwhelming response from investors,Midea eventually expanded the offering and priced it at T+98 basis points.

This is the first green bond issuance in the domestic industry in China. The issue price has achieved the lowest issue margin compared to private enterprises with similar ratings and maturity. It attracted a diverse set of investors from central banks,asset management companies,banks,and private banks from as wide as Asia,Europe,Africa,and the Middle East. It has also been warmly received by sustainable development investors with Green and ESG investors accounting for about 20% of the bonds issued.

According to Midea's announcement,the funds raised will be used to fund various green projects,including Midea's green design and green manufacturing,such as producing environmentally friendly and energy-efficient products,its' low-carbon strategy,upgrading energy-saving of manufacturing equipment,green upgrading of energy infrastructure,and increasing renewable energy procurement.

Midea has actively implemented national "Carbon Peak and Carbon Neutrality" strategic goals and pursued green development. It aims to enable green and low-carbon transformation of products through technological innovations and to realize energy conservation and emission reduction of manufacturing processes by upgrading equipment and lean production. The green bond is the first green financing tool that Mideaadopted to support its green strategy,demonstrating Midea's commitment to corporate social responsibility and green development.

Midea's green strategy was officially unveiled in October 2021. Based on the mission of "Building a Greener Global Supply Chain,providing Green Products and Services,and jointly building a Green Planet",the green strategy requires Midea to reach its target of peaking carbon emission by 2030 and achieving carbon neutrality by 2060,which will be achieved through six pillars of "green design,green procurement,green manufacturing,green logistics,green recycling,and green service". Midea intends to make significant contributions to the world's "Carbon Peak and Carbon Neutrality" goals.

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