Linklaters advises on State Grid’s RMB 14.9bn dim sum bond issuance

Linklaters has advised State Grid Corporation of China (State Grid) on its successful issuance of RMB 14.9bn dim sum bonds, setting multiple records including the largest ever offshore RMB bond issuance by a centrally administered state-owned enterprise and the highest oversubscription multiple achieved in the offshore Renminbi bond market.

The three-tranche offering includes RMB 3.9bn five-year bonds, RMB 7bn 10-year bonds and RMB 4bn 20-year bonds. The issuance saw strong demand from global investors, with overall subscription exceeding 13 times the issue size, reflecting the international capital markets’ confidence in the long-term growth prospects of high-quality Chinese issuers.

Leveraging the expanded institutional quota and investor base under the Southbound Bond Connect, the issuance received subscriptions from the first batch of onshore insurance companies qualified for such scheme, setting a milestone for outbound investment by onshore Chinese insurance capital.

The Linklaters team was led by capital markets partners William Liu, Lipton Li and Min Fang, with support from Lily Wang.

Linklaters’ partner Lipton Li commented:

“We are honoured to be a long-term adviser to State Grid in the international capital markets and to have worked closely with State Grid on this successful issuance. This transaction further enhances the dim sum bond yield curve and enriches the supply of high-quality long-tenor Renminbi assets. As cross-border financing channels continue to evolve, we look forward to helping our clients access the Renminbi bond market and supporting the development of Hong Kong as a leading Renminbi financing hub.”

Drawing on over 50 years of experience in Hong Kong SAR and the wider region, as well as the firm’s global platform, Linklaters have played a leading role in the Renminbi internationalisation initiative, advising on many of the region’s landmark RMB bond and cross-border capital markets transactions. We recently advised on the inaugural dim sum bond issuances by multiple Chinese and international issuers including Kuaishou, the Development Bank of Kazakhstan, the Government of Indonesia, and Chubb.