China’s largest carbon-neutral commercial mortgage-backed security (CMBS) saw Zhong Lun Law Firm advising on the RMB8.7 billion (USD1.3 billion) bond issue.
The CMBS is linked to a portfolio of office buildings owned by Jinmao Investment Management and was oversubscribed 2.5 times with a price-to-par yield of 3.4 per cent due in 2040.
The carbon-neutral bond was developed after the Central Government set a “Dual Carbon” target of capping CO2 emissions before 2030 and achieving carbon neutrality by 2060.
Zhong Lun’s team was led by partners Liu Borong and Xu Wei. The firm provided full legal services covering due diligence, demonstration and feasibility analysis, drafting documents and legal opinion.