DeHeng Assisted China Railway Construction Corporation in Issuing 2024 Perpetual Tech Innovation Corporate Bonds (Tranche 1)

2024-06-08

On November 17, 2023, China Railway Construction Corporation Limited (“CRCC,” A-share Code: 601186, H-share Code: 01186.HK) obtained approval from the China Securities Regulatory Commission to publicly issue corporate bonds with a total par value of up to RMB 30 billion, targeting professional investors. These bonds may be issued in multiple tranches during the registration validity period. DeHeng has successfully advised CRCC in completing the issuance of two prior tranches of perpetual tech innovation corporate bonds, with a cumulative issuance of RMB 4.7 billion to date. 

On June 6, 2024, CRCC completed the public issuance of its 2024 Perpetual Tech Innovation Corporate Bonds (Tranche 1). The issuance included Type 1 bonds (3+N years), issued at RMB 1.5 billion with a coupon rate of 2.30% for the first cycle, achieving a subscription multiple of 4 times; Type 2 bonds (5+N years), issued at RMB 1 billion with a coupon rate of 2.43% for the first cycle, achieving a subscription multiple of 5.17 times; and Type 3 bonds (10+N years), issued at RMB 0.5 billion with a coupon rate of 2.70% for the first cycle, achieving a subscription multiple of 3.52 times. All three types set new nationwide records for the lowest coupon rates among perpetual bonds with similar terms.

As the issuer’s legal advisor for this bond registration and issuance, the DeHeng team, led by partner Wang Yuwei of the Shanghai Office, with primary support from lawyers Wang Junzhe and Pan Leiyang, worked closely with the issuer and other intermediaries and delivered professional, comprehensive, high-quality, and efficient legal services for the issuance.