On November 28, 2025, CH MODERN D (01117), a leading dairy farming company in China, announced that its 5-year $350 million senior unsecured sustainability bond issuance has been awarded the "Best Bond Deal (China Offshore Market)" for 2025 by FinanceAsia, a prestigious financial magazine. This recognition highlights CH MODERN D's innovative leadership in sustainable finance, exceptional execution capabilities, and its significant positive impact on the industry.
The bond issuance achieved several milestones: - First sustainability USD bond in the Asia-Pacific food and beverage sector. - First sustainability USD bond in the global dairy industry.
As a traditionally "hard-to-abate" sector, dairy farming faces heightened environmental scrutiny. CH MODERN D took a pioneering step in ESG financing through its Sustainability Financing Framework, which received a second-party opinion (SPO) from Moody's and an SQS3 (Good) rating. Notably, the framework was rated as "best practice" in fund allocation, project evaluation, and management, setting a replicable benchmark for future issuers and enhancing the sector's ESG credibility.
The successful issuance demonstrates that even hard-to-abate industries can attract global ESG capital with robust frameworks and measurable impact, providing a precedent for other traditional sectors pursuing sustainable financing. The deal also aligns with China's "dual carbon" goals and rural revitalization policies, signaling a strong ESG transition for the industry.
Despite market challenges in July 2025—including uncertain interest rate outlooks, FX volatility, and commodity price instability—CH MODERN D leveraged its S&P BBB investment-grade rating (stable outlook) to engage global investors through detailed roadshows. The company effectively communicated its commitments to low-carbon development, water management, and community initiatives, translating investor confidence into strong demand.
Key achievements of the issuance: - Oversubscription: Final order book exceeded $1.2 billion, achieving 3.4x coverage. - Upsized: Issuance increased from $300 million to $350 million due to robust demand. - Tight pricing: Final pricing tightened by 50bps from initial guidance with "zero new issue premium." - Record: Narrowest spread for a BBB-rated Asia-Pacific food & beverage issuer in 2025.
The award underscores CH MODERN D's long-term sustainability strategy and secures critical funding for green and social projects. The deal also optimizes the company's capital structure and reinforces its leadership in sustainable finance, balancing economic benefits with environmental and social responsibility.
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