KWM advises Agricultural Development Bank of China on RMB bonds issuance

King & Wood Mallesons (KWM) has advised the Agricultural Development Bank of China (ADBC) on the successful issuance of RMB bonds worth ¥3bn (£300m) and getting listed on the Hong Kong Stock Exchange.

This is the first RMB bonds issuance of ADBC in Hong Kong in 2014 and is the first RMB bonds issuance of a policy-oriented financial bank from mainland China in Hong Kong in 2014.

The bonds are issued to institutional investors with terms of two years and three years respectively at the interest rate of 3.08 per cent and 3.28 per cent per annum.

Founded in 1994, ADBC is a state-owned agricultural policy bank under the direct administration of the State Council. It primarily focuses on raising funds and undertaking state provision of agricultural policy-related financial services, acting fiscal funds allocated for agriculture and providing services for agricultural and rural economic development with service network across mainland China.

KWM served as the PRC legal counsel to the issuer. The project was led by partner Zhao Xiaohong.