Watson Farley & Williams (“WFW”) advised the Credit Guarantee and Investment Facility (“CGIF”) on its guarantee of blue bonds issued by China Water Affairs Group Limited (“China Water Affairs”). The five-year CN¥1bn 3.45% senior unsecured blue bonds will be used to finance sustainable water and wastewater management projects. This transaction marks CGIF’s first-ever guarantee of a blue bond issuance, having previously supported all other types of thematic bonds in the region. CGIF’s guarantee enhanced the credit rating of the blue bonds and enabled China Water Affairs to diversify its funding sources and investor base, attracting sovereign wealth funds and government entities.
CGIF is a trust fund of the Asian Development Bank, established in 2010 by the ten member states of the Association of Southeast Asian Nations (ASEAN), China, Japan, the Republic of Korea and the Asian Development Bank. It is a key component of the Asian Bond Markets Initiative and provides credit guarantees for bonds issued by credit worthy ASEAN+3 domiciled issuers.
China Water Affairs is one of the largest publicly listed water supply companies in China. It has experienced significant growth since it was founded in 2003, primarily through mergers and acquisitions in developing cities in China.
The cross-border WFW Finance team that advised CGIF was led by Hanoi Partner Matt Lorimer, supported by Singapore Senior Associate Billy Fraser, Hong Kong Associate Jim Chan and Hanoi Paralegal Phan Nguyen. Hong Kong law expertise was provided by Hong Kong Partner Dora Ying and Trainee Natalie Lo, with US securities law assistance provided by New York Partner Will Vogel.
Matt commented: “We are delighted to have supported CGIF on this significant financing. This transaction underscores WFW’s expertise in handling complex financial arrangements and commitment to supporting our clients in achieving their strategic goals”.
