Fangda Partners acted as neutral transaction counsel in an CNY 850 million financing between the borrower, Xingtong Holdings Co., Ltd., and the lender, Industrial Bank Co., Ltd. Fangda provided full-scope legal services throughout the transaction and assisted with the successful transaction closing before the end of 2025. This transaction represents another significant cross-border mining finance deal completed by Fangda.
The financing supports the borrower’s Mexican subsidiary, VESCO HOLDING MEXICO, S.A. DE C.V., in developing a copper concentrate project located in Nacozari, Sonora State, Mexico. The loan proceeds are designated for the borrower to make advance payments for purchases refined products of the Mexico subsidiary, thereby supporting the construction and operation of the copper concentrate project and providing a stable cash flow. The credit support structure for the financing includes shareholder keepwell arrangements, centralized account supervision, and a pledge over offtake agreement.
This transaction faced multiple complex challenges: it required coordinating across applicable laws in jurisdictions including mainland China, Hong Kong, and Mexico and meeting the specific internal approval requirements of both the borrower and the lender. In addition, the transaction was subject to compliance reviews related to anti-bribery, anti-money laundering, and international sanctions. Furthermore, the transaction involved the design of several special commercial terms, demanding a high degree of precision and comprehensiveness in the cross-border transaction structure. Fangda leveraged its extensive expertise in cross-border financing and the mining sector to efficiently coordinate all parties, resolve legal and commercial complexities, and ensure the compliant and orderly execution of the transaction. All the stakeholders involved highly praised Fangda's contributions.
The transaction was led by Mr. Shepard Liu and Ms. Emma Pan. Banking & Finance partner Mr. Laurence Yuan also provided legal support.