Linklaters advised the People’s Government of Hainan Province of the People’s Republic of China (Hainan Provincial Government) on its RMB 5bn (approx. US$ 695m) offshore multi-series bond issuance – the first offshore bond issuance by the Hainan Provincial Government. The transaction also marks the first blue bond and the first sustainability bond issuance by a local government in mainland China.

The inaugural issuance, comprising three tranches: RMB 1.2bn (approx. US$ 167m) 2.42% 2-year blue bonds, RMB 2.6bn (approx. US$ 361m) 2.65% 3-year sustainability bonds and RMB 1.2bn (approx. US$ 167m) 2.85% 5-year sustainability bonds, was oversubscribed by international investors, including major international banks, asset management companies and funds. The total order book exceeded RMB 10bn – a reflection of the strong investor appetite in the development and construction of the Hainan Free Trade Port, as well as the confidence of global investors in China’s economy. The successful issuance has enriched the diversification of investment products in the offshore RMB bond market.

The bonds will be listed on the Hong Kong Stock Exchange and cleared through the Central Moneymarkets Unit of the Hong Kong Monetary Authority. All three tranches of bonds have been certified by the Hong Kong Quality and Assurance Authority.

The Linklaters team was led by Asia Managing Partner William Liu and capital markets partner Michael Ng, with support from managing associate Allen Zhang.

Linklaters also previously advised the People’s Government of Guangdong Province on its first offshore bond issuance and People’s Government of Shenzhen Municipality of Guangdong Province on China’s first offshore bonds by a municipal government.