Dacheng Attorneys Advise COFCO on Super & Short-term Commercial Paper Issuance

Having advised China Oil & Foodstuffs Corporation (“COFCO”) on the issuance of the second round of short-term financing bills for 2012, Dacheng senior partner Zhang Gang and partner Chen Lingling once again acted for COFCO on the issuance of the first round of super & short-term commercial papers. The commercial papers, due in 270 days, were issued on June 21 2012, raising RMB5bn.
 
Super & short-term commercial paper (“SCP”) is a kind of short-term bond due in no more than 270 days (or 9 months), issued at the interbank bond market by non-financial businesses with legal personality and high credit rating. Compared with other debt financing products, SCP features less complex information disclosure, simple registration, efficiency in issuance and flexibility in the use of capital. SCP not only enriches the variety of tools in China’s monetary market, but also broads the channels of direct debt financing for businesses, bringing them much more flexibility and convenience.