DeHeng Advised Huaxin Cement on Issuing USD 300 Million Bonds

2020-11-24

In November 2020, Huaxin Cement Co., Ltd., through its overseas wholly-owned subsidiary, completed the issuance of USD 300 million in bonds overseas, with a term of 5 years and the annual coupon rate of 2.25%.The issuer and the bond were both rated by the international rating agency Moody's as Baa1.Barclays Bank acted as the exclusive rating consultant and exclusive underwriter.

The issuance had two highlights. First, Moody's Baa1 rating. Headquartered in Wuhan, Huaxin Cement mainly serves the market of Hubei. When it prepared for the bond issuance, the COVID-19 broke out. Despite that and the drastic fluctuations in the cement business cycle, it managed to get the Baa1 rating. Second, the bond was highly recognized and enthusiastically sought after by international investors. On the day of issuance, it attracted up to 70 high-quality investors from Europe, Singapore, Hong Kong and other regions, of which 30% were from European and other international orders, covering a great variety of subscribers including domestic and foreign sovereign investment funds, multinational asset management companies, insurance funds, commercial banks, and private banks. Huaxin Cement fully demonstrated its brand, strength and development strategy during the road show and pricing process.

As the domestic legal counsel, the DeHeng team was led by partner Hou Zhiwei, with primary support from partner Zhang Yan, lawyers Wen Bin, Wang Jing, Hu Xueyuan, Wang Yujia, Xianyu Jiashan and paralegals Sun Yuehao and Jiang Yue. They worked closely and actively with the issuer, underwriter and rating agency and provided professional, comprehensive and efficient legal services for the client.