DeHeng Law Offices and Tian Yuan Law Firm advised on China’s first national asset-backed commercial paper (ABCP) for a public-private project.
The issuer was Chongqing Maohe, which specialises in the municipality’s infrastructure projects and is 90% owned by China Construction Fifth Engineering Division, a state-owned enterprise.
DeHeng Law Offices’ partner Kong Weiping along with Liu Ziwei and Liu Yanyan advised issuer. Chen Sheng, a partner of Tian Yuan Law Firm, also advised. Huatai Securities was the underwriter.
The ABCP, a short-term money-market security, was issued to help finance the Longzhou Bay tunnel, which is being built by China Construction Fifth Engineering Division
The RMB975 million two-month commercial paper was issued in the National Association of Financial Market Institutional Investors. It had a coupon rate of 2.7% with orders reaching more than 3.23 times.
