DeHeng Law Offices, Dacheng Law Offices and Ashurst assisted on Zhuhai Rural Commercial Bank’s (ZRCB) issuance of RMB500 million (USD68.6 million) worth of three-year unsecured green bonds on the Chongwa (Macao) Financial Asset Exchange (MOX) at a 3.5% coupon rate.
This is the first lotus bond, i.e., an offshore RMB-denominated bond issued in Macau and listed on the MOX, of its kind issued by a local bank in China. It is also the first unsecured green bond issued by a mainland entity in Macau.
Eligible investors can purchase the bonds via “southbound trading”, which allows mainland residents to invest in Hong Kong’s bond market through mutual access between the financial institutions of the two places.
DeHeng advised ZRCB on PRC law, headed by capital markets, cross-border investment and finance partner Hou Zhiwei with assistance from partner Zhang Yan.
Senior partner Jiang Weiguang in the Nanjing office led the Dacheng team and provided advice on PRC law to the underwriters, including the Bank of China’s Macau branch, Huatai Financial Holdings, Luso International Banking, Industrial Bank’s Hong Kong branch, Guotai Junan Securities and China CITIC Bank International.
Ashurst counselled the underwriters and trustees in foreign law, led by global markets partner Jessica Li and supported by partner Caroline Smart.