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DeHeng Advised Several Companies on Overseas Bond Issuance

2021-08-21


Recently, the project team of Hou Zhiwei, partner of DeHeng's Beijing Office, advised the following enterprises on issuing overseas bonds.


Sichuan Development (Holding) Co., Ltd. 


In January 2018, DeHeng advised Sichuan Development (Holdings) Co., Ltd. on establishing a USD 2 billion medium-term note program abroad. In August 2021, it completed the renewal of its medium-term note program, and successfully priced and issued five-year USD 400 million senior fixed-rate unsecured bond with a coupon rate of 2.8%. The issuance adopted the structure of keepwell deed plus Equity Interest Purchase Undertaking (EIPU), with Sichuan Development International Holdings Co., Ltd., a wholly-owned subsidiary of Sichuan Development (Holdings) in Hong Kong, and its overseas special-purpose-vehicle company Yieldking Investment Co., Ltd. as the issuer. The bonds were warmly subscribed by institutional investors in Hong Kong, Singapore, and Europe, and were 8.75 times oversubscribed at most. The bond was the first in the world to be listed in Hong Kong, Macao and Luxembourg at the same time, and set a record low interest rate for local state-owned enterprises in central and western China.


DeHeng once again served as the Chinese legal counsel for the issuer in the offering.


ICBC Financial Leasing Company Limited


In August 2021, ICBC Financial Leasing Co., Ltd. issued USD 1.25 billion bond through its subsidiary ICBCIL Finance Co., Ltd. For credit enhancement, ICBC Financial Leasing provided the keepwell deed, the liquidity support agreement and the asset purchase commitment for the issuance.


DeHeng acted as the Chinese legal counsel for the underwriter in this offering.


Shangrao Innovation & Development Industry Investment Group Co., Ltd


In August 2021, Shangrao Innovation & Development Industry Investment Group Co., Ltd. issued USD 96 million bond overseas with a coupon rate of 4.0%. The Bank of Jiujiang provided it with the standby letter of credit.


DeHeng acted as the Chinese legal counsel for the underwriter in this offering.


Nanchang Jinkai Group Co., Ltd. 


In July 2021, Nanchang Jinkai Group issued USD 225 million bond overseas with a coupon rate of 3.45%. The Bank of Jiujiang provided it with the standby letter of credit.


DeHeng acted as the Chinese legal counsel for the underwriter in this offering.


In these projects, the DeHeng team was led by partner Hou Zhiwei of the Beijing Office, with primary support from lawyers Zhang Yan, Hu Xueyuan, Wang Jing, Xianyu Jiashan, Sun Yuehao, Wang Yujia, Wen Bin, Jiang Yue and Sha Fei.

Relevant Lawyer

  • Zhiwei HOU

    Partner

    Tel:+86 10 5268 2888

    E-mail:houzw@dehenglaw.com

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