Dacheng Attorneys Advise Guangxi Gaofeng Forest Farm on MTN Issue

On July 18 2012, the state-owned Gaofeng Forest Farm of Guangxi Zhuang Autonomous Region successfully issued its first round medium-term notes (abbr.: 12桂高峰MTN1, No.: 1282259) of a 3-years term at a coupon rate of 5.98% per annum. The issue was scheduled to raise RMB 400mln and the MTNs would be offered to the interbank bond market starting from July 23. Shanghai Pudong Development Bank acted as lead underwriter for the notes, Dagong Global Credit Rating Co. serving as credit rating agency and Guangxi Xianghao CPA Co. as auditor. Dacheng offered legal counsel for the issuer, with Liu Chengquan, Peng Songzhi and Huang Yijie acting as handling attorneys.
 
Established in 1953, Gaofeng Forest Farm is a key player in the forestry and logging industry in China. In May 2011, it was selected as one of the first “Top 10 Forest Farms in China” by the State Forestry Bureau. The successful issue of the MTNs is a ground-breaking move of direct financing from the capital market by such large-scale state-owned forest farm as Gaofeng.