The Shanghai Stock Exchange has issued a letter to Beijing Capital Agribusiness & Foods Group Co., Ltd. (CAG) to certify that CAG now satisfies the conditions of a high-quality issuer. CAG’s application for the shelf registration of corporate bonds was then approved by the China Securities Regulatory Commission for up to RMB 10 billion. Attorney XUE Lian, a partner in the Beijing Office of V&T Law Firm, had set up a special team consisting of Attorney LIU Fang and Trainee Solicitor WANG Zhiheng to provide professional assistance service for this project.
CAG’s shelf registration of corporate bonds was in the first batch of such bonds accepted by the Shanghai Stock Exchange since the corporate bond registration system was implemented on March 1, 2020, and it was also the first corporate bond project for which a Beijing Municipal state-owned enterprise has applied. CAG’s shelf registration allows it to issue general corporate bonds, extendable corporate bonds, green bonds, poverty alleviation bonds, and exchangeable bonds. Based on fund demand, CAG can select the kind of bond it wishes to offer, the offering program, and the use of the funds raised.
CAG was formed in December 2017 through a merger of Beijing Grain Group Co., Ltd. and Beijing Er Shang Group Co., Ltd. This merger was approved by the Beijing Committee of the Communist Party of China and the People’s Government of Beijing Municipality. In December 2018, CAG was reorganized as a state-owned capital investment enterprise, as approved by the People’s Government of Beijing Municipality. After the reorganization, CAG became an integrated food producer, supplier, and service provider. CAG’s assets exceed RMB 100 billion, and its annual revenues are more than RMB 100 billion. CAG’s operations encompass the whole industrial chain from breeding, planting, and cultivation, to product processing and trade flows to terminal sales links. Industries covered include dairy, oils, meats, aquatic products, sugar, wine, and condiments. CAG currently has nearly 60,000 employees and owns over 500 subsidiaries, including more than 30 Sino–foreign joint ventures, over 10 overseas companies, two listed companies, and seven State Key Leading Enterprises of Agricultural Industrialization. CAG ranks among the top 500 Chinese corporations, and it plays a major role in the provision and safety of the food industry in Beijing.
V&T’s team was led by Attorney Xue. He specializes in company law, capital markets, private equity, and investment mergers and acquisitions. He provides full legal services for offerings, refinancing’s, mergers & acquisitions, and various other investment and financing projects. Attorney Xue has many years of experience in these areas, and his team is highly praised by clients for its professionalism and attention to detail.