DeHeng Advised Yunnan Investment Group
on Issuing RMB 2 billion Bonds for COVID-19 Response
2020-03-10
In order to fully implement the deployment of Yunnan Provincial Party Committee and People's Government on improving core abilities of treating major infectious diseases and of disease control and prevention institutions, Yunnan Investment Group Co., Ltd. (hereinafter referred to as "Yunnan Investment Group" ) leverages its domestic AAA and international BBB credit rating, and works with Minmetals Securities and DeHeng Law Offices with the support of provincial departments to launch the project of non-public issuance of corporate bonds (COVID-19 response bonds) (hereinafter referred to as "the issuance").
On March 10, the first tranche of RMB 2 billion, out of the RMB 4 billion goals of the first phase, was successfully raised through non-public issuance of the bonds (COVID-19 response bonds) with a term of 5 years (3+2) and a coupon rate of 4.05%. It was Yunnan's first COVID-19 response bonds issued on Shanghai Stock Exchange, with a record-low interest rate among Yunnan's privately issued bonds with the same term. The money raised will all go to the construction of infectious disease hospitals and the upgrading of disease prevention and control centers across Yunnan, to improve the province's core abilities to treat major infectious diseases and of disease prevention and control institutions.
Known formerly as Yunnan Development & Investment Co., Ltd., Yunnan Investment Group is a large state-owned enterprise registered and incorporated on September 5, 1997, with the approval of Yunnan provincial people’s government. It obtained its current name in September 2007, with a registered capital of RMB 24.17 billion. Its investment portfolio covers energy, railway, finance, information technology, tourism & culture, agriculture and forestry, health care, and poverty alleviation. It plays a backbone role in promoting industrial transformation and development and stable economic growth in Yunnan.
As the legal counsel for the issuance, the DeHeng Kunming team, led by partner Wu Zhixu, with primary support from partner Zhang Weijie and lawyer Zheng Wenyu, worked actively with core lawyers and secretaries from Beijing, Shenzhen and Chongqing offices to give full play to their synergy and timely and efficiently complete the internal control process including drafting, internal review, review and formal issuance of legal opinions, providing a solid guarantee for the success of the issuance.
