DeHeng Advised Several Companies on Overseas Bond Issuance in 2020

2020-11-02

As of the end of December 2020, the DeHeng team led by partner Hou Zhiwei in the Beijing Office had advised the following companies on the issuance of overseas bonds.

In that month, Chailease International Finance Corp. issued 3-year senior bonds worth USD 300 million on the Stock Exchange of Hong Kong, with a fixed interest rate of 3.75%. The bond was issued by a foreign-invested enterprise within the difference between investment and registered investment, and thus need not to apply for filing in advance with the National Development and Reform Commission in accordance with Circular No.2044. Chailease International Finance was established in 2005 and is headquartered in Shanghai. It is committed to providing financing lease services for small and medium-sized enterprises. In the past 15 years, it has opened 49 branches, served more than 50,000 clients, and granted and invested more than RMB 130 billion. The issuance of US dollar bonds reflects international investors' high confidence in the company's stable operation and sustainable development despite the pandemic, and lays a solid foundation for it to gradually expand the credit financing channels and steadily build up its reputation in the international capital market.

DeHeng acted as the counsel for domestic underwriters: Mizuho Securities, HSBC, KGI Securities, SMBC Nikko Securities, DBS Bank and CMBC Hong Kong Branch.

In the same month, Guangxi Communications Investment Group Co., Ltd. publicly issued USD 200 million bonds through an overseas wholly-owned subsidiary, Sino Trendy Investment Limited, with a maturity of 5 years and a coupon rate of 2.95%. The bonds were issued in both Hong Kong and Macao. This was the first five-year US dollar bond issued by Guangxi's state-owned enterprises overseas, and also the first bond listed in Hong Kong and Macao at the same time by a Guangxi issuer, and registered the lowest overseas financing costs for Guangxi's SOEs so far.

DeHeng acted as the counsel for domestic underwriters: Bank of China, CCB International, CICC, CMBC, CMB Wing Lung Bank and Shanghai Pudong Development Bank.

Also in the same month, Weifang Binhai Investment & Development Co., Ltd. issued EUR 100 million of senior unsecured bonds at ChongWa (Macao) Financial Asset Exchange (MOX), marking its another successful issuance in the international capital market. The exclusive global coordinator Haitong Bank said that the bonds had been widely recognized by foreign investors, and enthusiastically subscribed by investors from Portugal, Switzerland, and Luxembourg on the day of pricing. This bond was also the first Euro bond listed on MOX, represented an important step for Weifang Binhai Investment & Development to actively participate in the Macao bond market and added to the diversity of bonds in the Macao financial market.

Weifang Binhai Investment & Development was established in August 2005 with the approval of the Weifang Municipal Government of Shandong Province. It is a municipal state-owned holding company established to develop the city's coastal areas, give full play to the coastal land and resources advantages, and follow the major decision by Weifang Municipal Party Committee and Municipal Government to shift economic gravity northward. The company has developed into a large-scale comprehensive state-owned investment enterprise capable of project investment, equity management, capital operation and real-economy development. Its investment goes to such industries as real estate, transport, finance, and municipal construction. After 12 years of continuous development and innovation, it has grown into an important force for optimizing the allocation of resources in Binhai and promoting regional economic and social development.

DeHeng acted as the domestic counsel for the underwriters: Haitong Securities, ICBC International, CNCB (Hong Kong) Capital and Central Wealth Securities Investment Limited.

The DeHeng team was led by partner Hou Zhiwei, with primary support from partner Zhang Yan and lawyers Wen Bin, Wang Jing, Hu Xueyuan, Wang Yujia, Xianyu Jiashan, Sun Yuehao and Jiang Yue.