JunHe Assisted a Syndicate Led by Bank of China (Hong Kong) m88 casino Crédit Agricole Corporate m88 casino Investment Bank in Providing a USD 4.5 Billion Overseas Sustainability-linked Syndicated Loan for Syngenta Group

In April 2022, Syngenta Group (HK) Holdings Company Limited, as the borrower, signed the syndicated loan financing documents with a syndicate consisting of Bank of China (Hong Kong) Limited, Crédit Agricole Corporate m88 casino InvestmentBank Hong Kong Branch m88 casino other financial institutions. The syndicate provided a sustainability-linked syndicated loan (including an initial credit facility m88 casino an additional credit facility) of up to USD 4.5 billion to Syngenta Group (HK) Holdings Company Limited, m88 casino Syngenta Group Co., Ltd. as the guarantor provided the loan’s cross-border guarantee. According to Refinitiv, this was the largest syndicated loan completed in China’s lending market since the beginning of 2022.

A sustainability-linked loan is a lending instrument that incentivizes the borrower to achieve the agreed sustainability performance targets. It links the financing price to the borrower’s own sustainability performance, m88 casino the lending bank will give a certain price discount if the pre-agreed sustainability targets are met during the borrower’s existence. In recent years, Chinese enterprises have continued to contract sustainability-linked m88 casino ESG-related loans, which can enhance the enterprises’ brm88 casino image of sustainability m88 casino save costs. Sustainability-linked loans match the sustainability preferences of financial institutions, seize a comparatively advantageous position in the financing market, m88 casino save costs by using a flexible financing structure.

JunHe acted as the PRC legal counsel to the syndicate in this project. They advised on legal issues such as the borrowing of foreign debt by an overseas subsidiary controlled by a Chinese enterprise m88 casino a domestic company providing a cross-border guarantee for a foreign loan. JunHe’s team advised on structuring arrangements for the financing transaction, drafted m88 casino finalized the financing documents, m88 casino advised on the relevant PRC m88 casino Hong Kong legal issues m88 casino customary issues related to international syndicated loans. With its banking m88 casino financial team’s vast experience in cross-border financing m88 casino foreign exchange legal issues, JunHe provided strong support for the company to complete the application for foreign debt m88 casino the cross-border guarantee for the foreign debt.

Partner LU, Juyi led this project.