DeHeng Advised Several Companies on Overseas Bond Issuance
2021-09-30
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, Sichuan Development completed the renewal of the medium-term note program and priced and issued the note. On this basis, at the request of investors, another USD100 million of 5-year senior fixed-rate unsecured bond was issued in September 2021, with a coupon of 2.8%.The issuance adopted the structure of keepwell deed plus 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 bond was issued simultaneously at Hong Kong, Macao and Luxemburg.
DeHeng once again served as the PRC legal counsel for the issuer and advised Sichuan Development on completing this offering.
Weifang City Investment Group Co., Ltd.
In September 2021, Weifang City Investment Group Co., Ltd. issued a USD 400 million three-year bond with a coupon rate of 2.60% overseas. It was the largest issuance of the USD-denominated bond by a prefecture-level state-owned enterprise in Shandong Province, with the lowest offering price and the highest subscription rate. The predecessor of Weifang City Investment Group is Weifang State-owned Assets Operation & Investment Company, which was established in 2003, and restructured into Weifang City Investment Group in October 2016, a wholly state-owned company directly under Weifang Municipal People's Government.
DeHeng acted as the Chinese legal counsel for the underwriter and advised Weifang City Investment Group on completing the offering.
Beijing Environmental Sanitation Engineering Group Limited
In September 2021, Beijing Environmental Sanitation Engineering Group Limited (“BESG”), through its overseas subsidiary Beijing Environment (BVI) International Co., Ltd., issued a USD 230 million three-year bond overseas with a coupon rate of 1.65%.The issuance adopted the transaction structure of “offshore financing against domestic guarantee,” with guarantee and credit enhancement provided by BESG.
DeHeng acted as the Chinese legal counsel for the underwriter and advised BESG on completing the offering.
Jinan City Construction Group Co., Ltd.
In September 2021, Jinan City Construction Group Co., Ltd., through an overseas platform company, Jinan Urban Construction International Investment Co., Limited, issued a USD 305 million five-year bond overseas with a coupon rate of 2.40%.
DeHeng acted as the Chinese legal counsel for the underwriter and advised Jinan City Construction Group on completing the offering.
Nanjing Niushou Mountain Cultural Tourism Group Co., Ltd.
In September 2021, Nanjing Niushou Mountain Cultural Tourism Group Co., Ltd. issued its first USD 150 million three-year bond overseas with a coupon rate of 2.05%. Nanjing Branch of the Bank of Jiangsu provided the standby letter of credit enhancement for this issuance. The coupon rate was the new low for long-term USD bonds issued by local state-owned enterprises in Jiangsu Province and also among the issuances of the same term with the standby letter of credit from the Bank of Jiangsu.
DeHeng acted as the Chinese legal counsel for the underwriter in this offering.
For the above clients, the DeHeng team was led by partner Hou Zhiwei of the Beijing Office, with primary support from partner Zhang Yan, and Wen Bin, Wang Jing, Hu Xueyuan, Wang Yujia, Xianyu Jiashan, Sun Yuehao, Jiang Yue and Sha Fei.
About the partner:
