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Allen & Overy advises on first panda bond issuance by an Italian issuer

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Tommasi Cristiano
Cristiano Tommasi



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Tsang Agnes
Agnes Tsang


Hong Kong

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05 August 2019

Allen & Overy has advised Cassa Depositi e Prestiti (CDP) on its inaugural RMB1 billion (approximately EUR130 million) panda bond issue. This is the first panda bond issuance by both an Italian issuer and a European national promotional institution. The bond was issued under CDP’s newly established RMB5bn issuance plan called “2019 Renminbi Bonds of Cassa depositi e prestiti S.p.A.” which was authorised by the People’s Bank of China.

The fixed rate, unsubordinated and unsecured bonds were offered to institutional investors operating in the China interbank bond market. The proceeds from the issuance will be used to finance, directly through Chinese branches of Italian banks or through Chinese banks, branches or subsidiaries of Italian companies established in China, supporting their growth.

Partner Cristiano Tommasi commented: “We are extremely honoured to have assisted CDP on the establishment of its panda bond issuance plan. The inaugural issue aims to support the growth of Italian enterprises in the Chinese market and falls within the wider context of the recently signed partnership between the Italian and Chinese governments. It has been a real pleasure to work together with our Hong Kong office and demonstrate once more the great expertise of Allen & Overy in connection with the debut for an Italian issuer on the panda bond market. An essential role has been played by our Italian Tax team, which gave a fundamental contribution to the success of this transaction.

Partner Agnes Tsang commented: “We are delighted to have advised on the first Italian panda bond. Having advised on a number of landmark panda bond transactions, Allen & Overy continues to play a leading role in promoting the development of China’s panda bond market. We hope to see more issuances from Italy in the near future.”

The Allen & Overy team advising the issuer was led by partners Cristiano Tommasi in Rome and Agnes Tsang in Hong Kong. Rome-based senior associate Sarah Capella, together with trainees Edoardo Tonachella in Rome and Pierfrancesco Bencivenga in Milan and associate Jiayin Yu and legal manager Evelyn Zhu in Hong Kong, provided support. Rome-based counsel Michele Milanese advised on the tax aspects.