The SLL Facility, which was arranged by Industrial Bank Hong Kong Branch as sole mandated lead arranger and bookrunner and sustainability structuring advisor, followed the successful completion of CNGR’s debut offshore green syndicated loan facility in May 2022 (“2022 Green Loan”). HSBC, Crédit Agricole CIB and China Construction Bank (Asia) were the mandated lead arrangers and bookrunners of the 2022 Green Loan, which took in a total book order of US$300m in commitments from 18 lenders from various jurisdictions (including Hong Kong, PRC, Macau, Taiwan, Korea, Indonesia, Luxembourg and Europe).

Under the terms of the latest SLL Facility, CNGR would be eligible for interest rate savings upon achieving pre-determined environmental, social and governance (“ESG”) targets with emphasis on greenhouse gas emission and wastewater management. The ESG targets are set with reference to the Sustainability Linked Loan Principles jointly published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association. The proceeds of the SLL Facility will be used to partly refinance the acquisition by CNGR of Debonair Holdings Private Limited, which holds partly an Indonesian nickel provider, through its subsidiary CNGR Zhongtuo, which was completed in late 2022.

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 Reed Smith team advising on the deal was led by Hong Kong based partner Michael Sinn (with the support from counsel Crystal Li and associate Dorothy Lo. The team was also supported by Singapore based partner Johnny Lim, consultant Carolyn Chia and senior associate Ping Ting Tan.