Cayman: Ogier advises China Shengmu Organic Milk in social responsibility ‘panda bonds’ first
Ogier has acted as Cayman Islands counsel to China Shengmu Organic Milk Limited on its successful issuance of the first tranche of super short-term commercial papers (social bonds) in the principal amount of RMB100 million.
The bonds are the first successful issuance of social responsibility bonds as well as the first private enterprise “Panda Bonds” with ‘credit risk mitigation warrant’ placement in China. Panda Bonds is the more common term for Renminbi-denominated commercial papers issued by a non-Chinese issuer in China.
The proceeds of the bonds will be used to support the operation of farmers and agricultural cooperatives in remote areas of China with an objective to improve the earnings of low-income groups and advance rural revitalisation in China.
China Shengmu is the largest supplier of desert organic raw milk in China with a strong focus on sustainable development and improving the climate conditions in the desert areas of China while creating economic benefits.
China Shengmu was rated AA by China Chengxin International Credit Rating. The bonds were also approved by the National Association of Financial Market Institutional Investors and independently certified by China Chengxin Green Finance Technology (Beijing) Limited in respect of its social responsibility elements.
The Ogier team in Hong Kong was led by partner Cecilia Li, with support from the firm’s global head of Corporate Nathan Powell, legal manager Randa Leung, and paralegals Kingston Tang and Brian Chu.
Cecilia said: “We are delighted to have supported China Shengmu on this unprecedented transaction and the successful issuance of the first social responsibility panda bonds in China.
“This transaction is also reflective of the continuous growth of the Panda Bonds market. We are glad to play a role in this and share our commitment to ESG development in the region.”
ENDS
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