DeHeng Advised Shandong Energy Group on the Issuance
of US$ 300 Million Bond in Hong Kong for the First Time

2017-07-27

Shandong Energy Australia Pty Ltd, a wholly-owned subsidiary of Shandong Energy Group Co., Ltd. ("Shandong Energy Group"), issued bonds of US$ 300 million due in 2020 in Hong Kong on July 26, 2017, at an interest rate of 4.55%. Shandong Energy Group provides unconditional, irrevocable security for this bond issuance. The underwriters of this issuance were Bank of China Limited, Société Générale, Hong Kong Branch of Industrial Bank, CEB International Capital, and Hong Kong Branch of China Everbright Bank. S&P rated the bonds at BB level. DeHeng provided professional legal services for this bond issuance project.

Shandong Energy Group ranked 372th in Fortune 500 Ranking 2017 released by U.S. Fortune with an income of 29.299 billion US dollars in 2016, up by 54 places over last year. Ranking in the list for the sixth consecutive year, Shandong Energy Group is the only enterprise in the ranking among all state-owned enterprises in Shandong Province. The issuance of bonds is the debut of Shandong Energy to the international financial market, which will enhance its reputation and help the low-cost development of its overseas subsidiaries. It is also a move for the group to carry out the reform and integrate into the global economic market as a state-owned enterprises.  This move is significant and exemplary for state-owned enterprises in Shandong Province and even the whole country.

DeHeng, as the Chinese legal counsel for the issuer, formed a project team with partner Hou Zhiwei as project leader and Zhang Yan, Fan Liangliang, Hu Xueyuan and Yang Jingjing as project participants. The project team members cooperated closely with the issuers, underwriters, foreign lawyers and other agencies in providing comprehensive, professional, efficient and high-quality legal services for this issuance.