China Modern Dairy proposes $350m sustainability bond issue

China Modern Dairy Holdings Ltd. announced plans to issue US$350,000,000 in sustainability bonds maturing in 2030, with a fixed interest rate of 4.875% per annum. The bonds, offered outside the United States, are priced at 99.375% of the principal amount. The company intends to use the proceeds from the bond issuance, net of underwriting commissions and expenses, for refinancing purposes, aiming to optimize its capital structure and diversify funding sources. Application has been made to the Stock Exchange of Hong Kong for the listing of, and permission to deal in, the Bonds. The bonds are expected to receive a “BBB” rating from S&P Global Ratings. The issue is subject to standard completion conditions and caution is advised when dealing in the securities.