King & Wood Mallesons has advised Bank of Qingdao Co., LTD. (Bank of Qingdao), by acting as the issuer’s legal counsel, on its successful issuance of  "2016-1 Green Bond of Bank of Qingdao". The issuing scale of the Green Bond is a total of RMB 4 billion, which is the first ever issuance of Green Bond among domestic City Commercial Banks. This is the second innovative leading project with deep impact to the market that KWM supported Bank of Qingdao after the first US$607 million listing on the Main Board of the Hong Kong Stock Exchange.

The Green Bond issued is a financial instrument, which only emerged in recent years, which aims at granting credit loans to environmental-friendly enterprises. Green Bond innovates the access to capital for financial institutions to back up programs of green industries through the bond market, and is a significant initiative to develop green financial system. The funds raised through this issuance will be used within the categories of energy conservation, pollution prevention, resource saving and recycling, clean transportation, clean energy and adaptation to climate change. Bank of Qingdao aims to exert a demonstration effect on the society by operating high-quality green industries programs and supporting regional green industries through this issuance of Green Bond.

Bank of Qingdao is a joint-equity commercial bank established on the basis of 21 urban credit cooperatives in the municipal districts of Qingdao.

KWM has assisted the client in all sides of the issuance of Green Bond and has provided resolutions and suggestions on relevant legal issues, The King & Wood Mallesons’ legal team was led by Shanghai-based partner Eddie Hu.