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JunHe Assists YUEXIU REIT to Successfully Issue USD $400 Million worth of High-Grade Bonds


On February 2, 2021, Yuexiu Real Estate Investment Trust (hereinafter referred to as "the company"), through its subsidiary Yuexiu REIT MTN Company Limited successfully issued USD $400 million worth of five-year high-grade unsecured fixed-interest bonds with a coupon rate of 2.65% (hereinafter referred to as "this issue"). This issue is the company's first withdrawal issue after the renewal of its USD $1.5 billion medium-term note plan. It is the lowest ever issuance yield and coupon rate among US dollar bonds of a Chinese real estate trust fund. It marks the company's first appearance in the overseas US dollar bond market since 2019. This issue made full use of the low interest rate market environment and received a warm response from the market.

Yuexiu REIT was listed on the Stock Exchange of Hong Kong Limited on December 21, 2005. It is the world's first listed REIT to invest in properties only in mainland China. The company focuses on office buildings, retail outlets, hotels, serviced apartments and other commercial properties. It aims to acquire properties that bring about considerable cash flow and returns, and identifies business opportunities for higher revenue growth through operation optimization.

JunHe acted as the domestic legal counsel of the underwriter in this project. It took two months from the start of the project to the renewal and successful extraction of the medium-term notes plan. Under this tight schedule, JunHe successfully assisted the company in issuing overseas US dollar bonds by providing high-quality, rigorous and efficient legal services, carrying out domestic legal due diligence, issuing Chinese legal opinions, assisting the company in internal and external approval processes, and reviewing transaction documents. JunHe won the affirmation and trust of the company and other intermediaries with its consistent rigorous and efficient working style, and the team’s meticulous and dedicated service attitude.

The lead partners of this project were Mr. YU, Yongqiang (YY) and Ms. LEI, Tianxiao.

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.