King & Wood Mallesons (“KWM”) advised Greenland Group (“Greenland”) on its successful initial issuance of “Greenland Di Chan Bao” on Guizhou Greenland Financial Exchange, a subsidiary of Greenland Financial Exchange. Greenland’s first online debt product was offered through Zhaocaibao – a platform owned by Ant Financial. With an initial issuance of RMB 200 million, a return of 6.4% per annum and a tenor of one year, Greenland Di Chan Bao was sold out within half an hour on its first day of listing. The funds raised will be used for reconstruction of shanty towns in Nanchang of Jiangxi Province, in line with the state policies for urban reconstruction and civil projects.

KWM advised Greenland on expanding its business from traditional real estate to internet-based property finance. A bold, yet timely initiative in securitising assets, this program allows individual investors to access funding platforms established by small to medium sized property developers. This new line of products is offered by Greenland Financial under a newly registered official trademark of “Greenland Di Chan Bao”. The KWM team, led by partners Jack Wang and Zhe Hu and associate Fushen Chen, advised Greenland on the program design and implementation, as well as new products design.

A Fortune 500 company, Greenland Group is China’s largest real estate developer. . The issuance of Di Chan Bao was Greenland’s first venture into internet finance and asset securitisation. The deal is likely to be used as precedent by other real estate developers, looking for alternative sources of funding.