Hong Kong – The Banking & Finance team of Reed Smith Hong Kong office recently advised CNGR Advanced Material Co., Ltd (“CNGR”) on the successful completion of its maiden green syndicated loan facility.

Related Professionals: Michael Sinn Crystal Xiaodan Li Dorothy Lo

Green globe

The syndicated loan facility, which was arranged by HSBC, Crédit Agricole and China Construction Bank (Asia) (as mandated lead arrangers and bookrunners) and was the first offshore green syndicated loan facility to be launched by CNGR, attracted significant level of interests in the local loan market. At the close of syndication, a total book order of US$300m in commitments was received from 18 lenders from various jurisdictions (including Hong Kong, PRC, Macau, Taiwan, Korea, Indonesia, Luxembourg and Europe), which was significantly more than the initial facility amount of US$200m that CNGR was targeting at the start of syndication.

Under the terms of the green loan facility, CNGR will use the loan proceeds to finance eligible green assets, projects and business activities as permitted under its Green Finance Framework, which had been developed in alignment with the Green Bond Principles issued by the International Capital Market Association and the Green Loan Principles jointly published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association.

CNGR is a PRC company listed on the Shenzhen Stock Exchange (300919.SZ) and engages in the research, development, production, processing, and sale of lithium battery cathode material precursors. Its main products include ternary precursors and cobalt tetroxide, which are used in the fields such as new energy vehicles, energy storage and consumer electronics. CNGR markets its products both domestically and worldwide.

The Hong Kong Banking and Finance team was led by Michael Sinn (Partner) with the support of Crystal Li (Counsel) and Dorothy Lo (Associate).