DLA Piper has successfully advised Hangzhou Qiantang New Area Construction and Investment Group Co., Ltd. (Hangzhou Qiantang New Area Construction and Investment Group), a Chinese state-owned enterprise (SOE), on the issue of a USD300 million 3.20 percent senior unsecured corporate bond due 2023. The Reg S bond was listed on the Hong Kong Stock Exchange.
The bond has received strong support from investors and was four times oversubscribed with orders reaching USD1.2 billion allowing the deal to tighten price guidance by 70bp. The proceeds will be used for general corporate purposes.
Hangzhou Qiantang New Area Construction and Investment Group mainly engages in infrastructure projects and urban renewal in Hangzhou Qiantang New Area, an integration of the former Hangzhou Dajiangdong Industrial Cluster and the former Hangzhou Economic and Technological Development Zone. Hangzhou is the capital of China’s Zhejiang province, a leading coastal province of China experiencing rapid economic growth.
Corporate partner Philip Lee, who co-led the deal along with partner Christina Loh, commented: “We are pleased to support the local Chinese government on this successful landmark transaction for Hangzhou’s SOE, which despite being unrated was priced extremely well in challenging markets. The successful completion of this bond offering demonstrates a high level of investment interest in the corporate infrastructure sector and support for SOEs in China.”
Partner Christina Loh added: “Bond issues are becoming an increasingly popular option among Chinese SOE, a trend that is helping to develop capital markets in China. By leveraging our global network and extensive capital markets experience, coupled with our in-depth expertise in China we were able to deliver the most successful possible outcome for our client.”
Guosen Securities (HK), ABC International and BOSC International were joint global coordinators, joint lead managers and joint bookrunners for the Reg S transaction, while Bank of China, China Minsheng Banking Corp. (Hong Kong Branch), CMBC Capital, CNCB Capital, GF Securities, Goldbridge Securities and Haitong International were joint lead managers and joint bookrunners.
The cross-border DLA Piper team was co-led by partners Philip Lee (Singapore) and Christina Loh (Hong Kong), supported by associates Shawn Xin (Hong Kong), Mei Shum Chan (Singapore) and registered foreign lawyer Marvin Qin (Hong Kong). Zhejiang Zeda Law firm acted alongside DLA Piper as local PRC counsel on the transaction.
