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JunHe Assists Ninghai County City Investment Group in its issuance of Offshore US Dollar Bonds


Recently, JunHe acted as international counsel and listing agent of the issuer, Ninghai County Chengyu Group Co., Ltd. ("Ninghai Chengyu") in the successful issuance of offshore US dollar bonds by Goucheng International Co., Ltd., a BVI subsidiary, (the "Issuer"). The Bonds have been listed on the Stock Exchange of Hong Kong Limited (the "Stock Exchange").


The Issuance of the Bonds adopted the structure of an issuance by an offshore entity and the provision of an unconditional and irrevocable guarantee by the onshore entities. The issuance of the bonds followed the Reg S principle, with a fixed interest rate of USD100 million, an interest rate of 3.50% and a term of issuance of three years. The bond was listed on the Stock Exchange of Hong Kong on December 17, 2020. This is the first offshore senior bond issued by Ninghai City.

Ninghai Chengtu was founded in 2000 and has been supported by the People's Government of Ninghai County since its inception. Ninghai CEC is the largest and most important infrastructure construction and operation entity under the People's Government of Ninghai County. It occupies a regional monopoly position in  industries such as urban land development and consolidation, road construction, water conservation and construction water services, the construction of affordable housing and development as well as the operation of industrial parks in Ninghai County. On behalf of SASAC of Ninghai County, the company manages and operates the state-owned stock assets to ensure the maintenance of their value and appreciation. The funds for urban construction and reconstruction are raised through multiple channels such as land purchases, reserves and public auctions for urban construction, development and maintenance as well as the reconstruction of the old city of Ninghai County, which has the dual function of land reservation and urban construction.

JunHe acted as the international legal counsel of the Issuer for this Project and provided comprehensive services to the client on the issue structure of the Bonds, the circular, the transaction documents and other related matters. JunHe also cooperated as the issuer's listing agent and on behalf of the issuer, fully communicated with the Hong Kong Stock Exchange on the listing arrangements and cooperated with the issuer to successfully complete the listing of the bonds. JunHe’s rigorous and efficient work style as well as the team’s meticulous and dedicated service attitude to the company and the other intermediaries won the affirmation and trust of all involved.

The lead partners of this project were Phyllis Xu and Chris Tang.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.