Debt capital markets
On 11 October, the Shenzhen municipal government completed the issuance of RMB5 billion (USD783,000) offshore multi-tranche renminbi bonds in Hong Kong, marking the first time a local government in China has issued offshore bonds.
The issuance comprises three tranches including RMB1.1 billion in two-year generational bonds as well as RMB1.5 billion in three-year bonds and RMB2.4 billion in five-year special bonds. The three-year and fiveyear special bonds are green bonds and the net proceeds will be used to finance water treatment projects, sponge city-related projects, and clean transportation projects.
JunHe was the domestic legal adviser to the Shenzhen government, assisting in internal and external regulatory communications, reviewing transaction documents, conducting PRC legal due diligence, and issuing PRC legal opinions. Linklaters served as the issuer’s international counsel. Allen & Overy advised the joint lead managers and joint bookrunners.
The bond was issued to domestic and foreign investors with a coupon of 2.68% per year. Fangda Partners acted as the underwriters’ Chinese legal counsel in the issuance, advising on all PRC legal aspects of the transaction. Linklaters acted as the sole transaction and issuer’s international counsel on the issuance.
The Ministry of Finance (MOF) issued a USD4billion rule 144A/reg S sovereign bond offering in Hong Kong, which was priced on 19 October and followed the MOF’s inaugural rule 144A/reg S offering targeting US and global investors last year.
The transaction represents the 40th anniversary of the resumption of China’s sovereign debt offering. The issuance comprises four tranches including USD1 billion in three-year bonds, USD1.5 billion in five-year bonds, USD1 billion in 10-year bonds and USD500 million in 30-year bonds.
Linklaters acted as the US, UK and Hong Kong SAR legal advisers to the MOF. Allen & Overy advised joint lead managers and joint bookrunners on the issuance.
Equity capital markets
Developer Guangdong – Hong Kong Greater Bay Area Holdings recently exchanged the outstanding USD293.5 million 14% senior notes due 2021 for its USD235.72 million 13.85% senior notes due in 2023 and issued an aggregate of USD41.5 million 13.85% senior notes due in 2023.
Previously known as Hydoo International, the company has a primary focus on the Greater Bay Area. Maples Group acted as Cayman Islands legal counsel. Sidley Austin acted as Hong Kong and US legal counsel and Global Law Office acted as PRC legal counsel to the Issuer. Shearman & Sterling acted as US legal counsel and Jingtian & Gongcheng acted as PRC legal counsel to the joint bookrunners including Haitong International, Guotai Junan International, Potomac Capital and Zhongtai International.
Zhuji State-owned Assets Management, a subsidiary of Zhuji Development, issued USD520 million 3.2% guaranteed bonds due 2024 in Hong Kong, which are guaranteed by way of debt issues to professional investors.
Maples Group acted as British Virgin Islands legal counsel, King & Wood Mallesons acted as English law counsel, Zhejiang Zhuosong Law Firm acted as PRC law counsel for the issuer and guarantor, Latham & Watkins acted as English law counsel to the joint lead managers and the trustee, and JunHe acted as PRC law counsel for the joint lead managers.
Chinese developer Helenbergh China issued USD102 million 11% green senior notes due in 2023 and a concurrent exchange offer of its outstanding 12.875% senior notes due in 2021, issued to certain holders.
Helenbergh was advised by Sidley Austin on US and Hong Kong law, and by Commerce & Finance Law Offices on PRC law. The initial purchasers were advised by Linklaters on US law and by Global Law Office on PRC law. Maples Group acted as Cayman Islands and British Virgin Islands counsel.
Chinese property developer Powerlong Real Estate Holdings issued USD100 million aggregate principal amount of 5% senior notes due in 2022 in Singapore recently.
Maples Group acted as Cayman Islands and British Virgin Islands legal counsel. Dorsey acted as US, English and Hong Kong law counsel, and Commerce & Finance acted as PRC law counsel to the issuer. Skadden acted as US law counsel and JunHe acted as the PRC law counsel to the initial purchasers. Tam Jai International, a Hong Kong rice noodle chain operator, raised HKD1.04 billion from its Hong Kong IPO on 7 October. The company was advised by Sidley Austin and barrister-at-law Foster Yim on Hong Kong law, and Drew & Napier on Singapore law. Dentons was PRC legal counsel. Deacons was legal adviser to the sole sponsor and the underwriters on Hong Kong law.
Ningbo Dechang Electrical Machinery Made, which manufactures and distributes electrical machinery, raised RMB1.62 billion through an A-share flotation. The company started trading on the main board of the Shanghai Stock Exchange on 21 October. Zhong Lun Law Firm provided legal services for the whole process of the deal.