Paul Hastings assists green dim sum bonds offer

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Paul Hastings assists green dim sum bonds offer

Paul Hastings has advised Hanwha Solutions, a South Korean multinational renewable energy service provider, in its first overseas green bonds offer, worth CNY1 billion (US$153 million), in Hong Kong.

The team was led by Seoul-based corporate partner Kim Iksoo and senior corporate attorney Hwang Eun Sang.

Kim said the deal involved a large number of parties across different geographies and tight deadlines. “This transaction is significant as this is an inaugural overseas bond offering by Hanwha Solutions, and the first dim sum bond offering by a Korean corporate issuer in a few years.”

Hanwa Solutions’ dim sum bonds, which are yuan-denominated bonds issued in Hong Kong, also mark the firm’s first overseas debt offering since its formation from the merger of Hanwha Chemical, Hanwha Q CELLS, and Hanwha Advanced Materials, in 2020.

With a three-year maturity, the bonds carry a rate of 3% and are guaranteed 50% each by the state-run Export-Import Bank of Korea and a trust fund of the Asian Development Bank, Credit Guarantee and Investment Facility. When swapped to Korean won, it will offer an annual interest rate of approximately 0.7%. The bonds received an AA rating from S&P Global Ratings.

The proceeds will be used for its eco-friendly business to drive environmental and social governance efforts. Green bonds are specifically earmarked to raise money for climate and environmental projects, and have to satisfy specific requirements to be issued.