By William Gullotti
Buffalo, N.Y., Jan. 2 – New Hope Group Co., Ltd. sold RMB 1 billion of 4.4% credit enhanced sustainability-linked bonds due 2026 at par, according to a listing notice with an appended offering circular on Tuesday.
The bonds are supported by an irrevocable standby letter of credit issued by Bank of Shanghai Co., Ltd., Chengdu Branch.
The coupon is subject to adjustment if the issuer fails to reach a certain sustainability performance target or publish the required verification report that affirms reaching the target.
China International Capital Corp., Fosun International Securities, BOSC International, Guotai Junan International, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Industrial Bank Co., Ltd., Hong Kong Branch, Citic Securities, ABC International, CNCB Capital and Shenwan Hongyuan (H.K.) are the joint lead managers and joint bookrunners for the offering, with China International, Fosun, BOSC and Guotai Junan also acting as joint global coordinators.
Fosun is further serving as sustainability adviser.
Proceeds will be used to refinance existing offshore debt, for procurement of raw materials and to replenish working capital.
Listing for the Regulation S bonds is expected on the Hong Kong Exchange effective Jan. 2.
New Hope is an agro-industrial and food enterprise group and one of the largest integrated suppliers of meat, eggs and milk in China.
| Issuer: | New Hope Group Co., Ltd.
|
| LoC issuer: | Bank of Shanghai Co., Ltd., Chengdu Branch
|
| Amount: | RMB 1 billion
|
| Issue: | Credit enhanced sustainability-linked bonds
|
| Maturity: | Dec. 29, 2026
|
| Bookrunners: | China International Capital Corp., Fosun International Securities, BOSC International, Guotai Junan International, China Zheshang Bank Co., Ltd. (Hong Kong Branch), Industrial Bank Co., Ltd., Hong Kong Branch, Citic Securities, ABC International, CNCB Capital and Shenwan Hongyuan (H.K.)
|
| Sustainability adviser: | Fosun International Securities
|
| Trustee: | CMB Wing Lung (Trustee) Ltd.
|
| Counsel to issuer: | Latham & Watkins LLP (England), Zhong Lun Law Firm (China)
|
| Counsel to underwriters: | King & Wood Mallesons (England, Hong Kong), Jingtian & Gongcheng LLP (China)
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| Coupon: | 4.4%
|
| Price: | Par
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| Yield: | 4.4%
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| Call: | For taxation reasons at par plus interest
|
| Puts: | At par plus interest for a change-of-control or no registration event
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| Pricing date: | Dec. 20
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| Issue date: | Dec. 29
|
| Listing date: | Jan. 2
|
| Distribution: | Regulation S
|
| ISIN: | HK0000971645
|
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