China Merchants Bank \ (CMB) recently successfully booked and issued 2023 special financial bonds for “agriculture, rural areas and farms” in an amount of up to RMB 5 billion in the national interbank bond market (the Bonds). Subject to the applicable laws and approval from the competent authorities, the proceeds raised from the issuance of the Bonds will be used to grant agriculture-related loans to promote rural revitalization in China. The Bonds attracted keen investor interest with a bid-cover ratio of 3.07 and gained wide market recognition. The Bonds coupon rate was 2.77%, which was a new low among financial bonds issued by commercial banks this year, and a total of 33 investors received allocation.
CMB is China's first joint-stock commercial bank wholly owned by corporate legal entities. Since its inception over 36 years ago, CMB has evolved into a banking group listed in both Shanghai and Hong Kong, with financial licenses covering commercial banking, financial leasing, fund management, life insurance, and overseas investment banking. In 2022, CMB was recognized by Euromoney as the Best Bank in China for the fourth consecutive year, marking the first “Four Consecutive Championships” in Euromoney's award history. CMB was ranked 11th on The Banker (UK)’s list of the Top 1,000 World Banks 2022), making the top 20 for the fifth consecutive year. The bank was ranked 174th on the Fortune Global 500 List, and was awarded the Best Wealth Management Bank in China by Asian Banker.
This issuance represents the first special financial bonds for agriculture, rural areas and farms issued by a national bank this year. They are also the first financial bonds issued by a commercial bank to promote rural revitalization and implement the State’s rural revitalization strategy established in the 2023 NPC & CPPCC Sessions.
Acting as legal counsel to CMB in this project, JunHe provided the client with comprehensive legal services on an ongoing basis with respect to the issuance of the Bonds, including but not limited to conducting legal due diligence, issuing legal opinion on the PRC laws, and drafting and revising the related applications and filings. JunHe’s hard-work, state-of-the-art legal expertise and prudent delivery of professional legal services earned it the recognition and trust of the client and other intermediaries.