Clifford Chance

Clifford Chance leads the way on Singapore dollar-denominated bonds guaranteed by the Asian Development Bank's Credit Guarantee and Investment Facility

Leading international law firm Clifford Chance has advised on all Singapore dollar-denominated bonds guaranteed by the Asian Development Bank's Credit Guarantee and Investment Facility (CGIF) in 2022 and 2023. These include the following.

• First Real Estate Investment Trust's S$100 million 5-year social bond
• Apeiron AgroCommodities' S$50 million 5-year green bond
• Erajaya Digital's S$50 million 3-year bond.
  

Since 2015, the firm's Capital Markets practice has advised on all SGD-denominated bond issuances guaranteed by CGIF, including IVL Singapore, CJ Logistics, Fullerton Healthcare and Nexus International Schools.

General Counsel & Board Secretary of CGIF, Gene Soon Park commented, “CGIF, established since 2010, now guaranteed more than 60 bonds in the 10 ASEAN + 3 (China, Japan & Korea) is keep expanding to become the Bond House of ASEAN+3. We are delighted to be at the verge completing capital increase to US$ 1.2 billion, with 2.5 times leverage & top tier reinsurers at our back, capable to underwrite US$ 3 to 4 billion in the local currency market. Green/Social/Sustainability bonds would definitely be our priorities not to mention to follow up with the Paris Alignment Mission.”

Gene added: "Clifford Chance has been participating in most of all CGIF guaranteed bond deals, and I find it lucky to have a renowned & sophisticated law firm in this cutting-edge product of the local currency bond markets for the mutual benefit of all participants in this region.”

Senior associate, Claire Neo who has advised on a number of these transactions said, "CGIF provides guarantees to local currency bonds issued by corporations in the ASEAN+3 region. These guarantees not only facilitate longer maturity periods, but also enable the bonds to attain an investment-grade rating (AA (S&P)) – a rare achievement in the SGD debt capital markets."

Capital Markets partner, Gareth Denier added, "Fixed income in emerging markets is being buffeted by numerous headwinds, including elevated volatility, monetary policy dispersion and "higher-for-longer" U.S. rates. Together with prevailing market uncertainty, the debt capital markets have been hard to tap for all but a few very high-quality names and seasoned issuers. The CGIF guarantee is therefore playing an important role in keeping the path to local currency markets open for companies in a wide range of industries in the ASEAN+3 region, and in doing so, is also effectively advancing the ESG agenda through use-of-proceeds issuance structures such as social and green bonds. We are very pleased to continue to play a part in this important segment of the Singapore debt capital markets."