Baker & McKenzie LLP
09/22/2025 | Press release | Distributed by Public on 09/22/2025 02:04
Baker McKenzie’s Joint Operation Partner FenXun and Baker McKenzie Wong & Leow Advise on CapitaLand Investment’s First Public Offering of a Foreign-Issued Sustainability-Linked[...]
Baker McKenzie's Joint Operation Partner in China, FenXun Partners (FenXun), and Baker McKenzie Wong & Leow have advised CapitaLand Investment (CLI) on the first public offering of a foreign-issued sustainability-linked Panda bond, raising RMB 1.2 billion. This deal marks the second landmark transaction in the China bond market where the cross-border team has supported CLI. In 2024, the team advised the company on the successful issuance of two sustainability-linked bonds, raising a total of RMB 2 billion.
This offering comprises a three-year bond of RMB 900 million with a coupon rate of 2.35% and a five-year bond of RMB 300 million with a coupon rate of 2.50% (which marks the first five-year sustainability-linked Panda bond in the market).
The issuance attracted significant interest from both Chinese and foreign banks, as well as active non-bank institutional investors such as insurance companies, brokers, public funds and trust companies. This broad participation further diversifies CLI's investor base and marks a new milestone for the company in China's bond market.
The bonds include a sustainability performance target: the percentage of renewable electricity usage (excluding tenants) in CLI's operating properties in China to reach at least 9.6% by 2026 and 16.8% by 2028. This aligns with CapitaLand's sustainability commitments and supports the goals outlined in its 2030 Sustainability Master Plan, which includes achieving a renewable electricity usage share (excluding tenants) of no less than 45% by 2030.
By virtue of the Baker McKenzie FenXun* joint operation platform that was established between Baker McKenzie and FenXun, the cross-border team acted as PRC and Singapore law counsel on the transaction. Drawing from the legal expertise of FenXun and Baker McKenzie Wong & Leow, the team provided comprehensive advice on structuring the deal, drafting or reviewing the registration and issue documents, and issuing PRC and Singapore legal opinions (including a special Singapore Qualifying Debt Securities (QDS) Scheme tax opinion), among other legal matters.
The team was led by Shirley Wang (senior partner, Banking & Finance) of FenXun and Min-tze Lean (principal, M&A) and Allen Tan (principal, Tax) of Baker McKenzie Wong & Leow. The core team members included Samuel He (counsel) of FenXun and Jeremiah Soh (principal), Natania Ng (associate) and Rachel Seow (associate) of Baker McKenzie Wong & Leow.
Commenting on the deal, Shirley Wang said, "It has been a privilege to support CapitaLand Investment in yet another landmark transaction. This deal not only underscores our client's strong market position and unwavering commitment to sustainability but also highlights the growing international appeal of Panda bonds - and our Firm's ability to help clients unlock the opportunities presented by this dynamic market."
Min-tze Lean and Allen Tan jointly added: "Amid growing interest among corporates in RMB-denominated financing and as companies increasingly align their strategies with global sustainability goals, we expect sustainability-linked instruments to play a pivotal role in shaping the future of cross-border capital flows. We look forward to continuing to support our clients in navigating this evolving landscape and structuring innovative transactions that deliver financial value while advancing sustainability objectives."
China International Capital Corporation Limited was the lead underwriter and bookrunner, while China Merchants Bank Co., Ltd. and Mizuho Bank (China) Co., Ltd. were the joint lead underwriters for this transaction.
* Baker & McKenzie FenXun (FTZ) Joint Operation Office is a joint operation between Baker & McKenzie LLP, an Illinois limited liability partnership, and FenXun Partners, a Chinese law firm. The Joint Operation has been approved by the Shanghai Justice Bureau.
This offering comprises a three-year bond of RMB 900 million with a coupon rate of 2.35% and a five-year bond of RMB 300 million with a coupon rate of 2.50% (which marks the first five-year sustainability-linked Panda bond in the market).
The issuance attracted significant interest from both Chinese and foreign banks, as well as active non-bank institutional investors such as insurance companies, brokers, public funds and trust companies. This broad participation further diversifies CLI's investor base and marks a new milestone for the company in China's bond market.
The bonds include a sustainability performance target: the percentage of renewable electricity usage (excluding tenants) in CLI's operating properties in China to reach at least 9.6% by 2026 and 16.8% by 2028. This aligns with CapitaLand's sustainability commitments and supports the goals outlined in its 2030 Sustainability Master Plan, which includes achieving a renewable electricity usage share (excluding tenants) of no less than 45% by 2030.
By virtue of the Baker McKenzie FenXun* joint operation platform that was established between Baker McKenzie and FenXun, the cross-border team acted as PRC and Singapore law counsel on the transaction. Drawing from the legal expertise of FenXun and Baker McKenzie Wong & Leow, the team provided comprehensive advice on structuring the deal, drafting or reviewing the registration and issue documents, and issuing PRC and Singapore legal opinions (including a special Singapore Qualifying Debt Securities (QDS) Scheme tax opinion), among other legal matters.
The team was led by Shirley Wang (senior partner, Banking & Finance) of FenXun and Min-tze Lean (principal, M&A) and Allen Tan (principal, Tax) of Baker McKenzie Wong & Leow. The core team members included Samuel He (counsel) of FenXun and Jeremiah Soh (principal), Natania Ng (associate) and Rachel Seow (associate) of Baker McKenzie Wong & Leow.
Commenting on the deal, Shirley Wang said, "It has been a privilege to support CapitaLand Investment in yet another landmark transaction. This deal not only underscores our client's strong market position and unwavering commitment to sustainability but also highlights the growing international appeal of Panda bonds - and our Firm's ability to help clients unlock the opportunities presented by this dynamic market."
Min-tze Lean and Allen Tan jointly added: "Amid growing interest among corporates in RMB-denominated financing and as companies increasingly align their strategies with global sustainability goals, we expect sustainability-linked instruments to play a pivotal role in shaping the future of cross-border capital flows. We look forward to continuing to support our clients in navigating this evolving landscape and structuring innovative transactions that deliver financial value while advancing sustainability objectives."
China International Capital Corporation Limited was the lead underwriter and bookrunner, while China Merchants Bank Co., Ltd. and Mizuho Bank (China) Co., Ltd. were the joint lead underwriters for this transaction.
* Baker & McKenzie FenXun (FTZ) Joint Operation Office is a joint operation between Baker & McKenzie LLP, an Illinois limited liability partnership, and FenXun Partners, a Chinese law firm. The Joint Operation has been approved by the Shanghai Justice Bureau.
Baker & McKenzie LLP published this content on September 22, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 22, 2025 at 08:04 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]