2021.06.25
In June 2021, Deqing Construction and Development Group Co., Ltd. (“Deqing C&D”) issued its initial overseas US dollar bonds. The issuance size was USD 150 million at an interest rate of 3.6% and the issuance period is three years. The bonds were listed on the Hong Kong Stock Exchange on June 25, 2021. This was the first time that an enterprise in Deqing County has issued overseas US dollar bonds. The bonds were subscribed by more than three times the number of investors and the final issue price was narrowed by 50BP. It sets the lowest interest rate in history for directly issuing overseas bonds without a credit rating in Huzhou.
Deqing C&D is a wholly state-owned enterprise approved by the People’s Government of Deqing County, and is responsible for the management of state-owned assets and infrastructure construction in Deqing County. The State-owned Assets Supervision and Administration Commission of Deqing County performs the role of the controlling shareholder. As the leading body of state-owned assets management and infrastructure construction in Deqing County, Deqing C&D undertakes the main land development business of East New District, Kangqian New District and the western part of Wukang Central Area as well as the construction and sale of affordable housing and resettlement housing in Deqing County, which is of great strategic importance.
JunHe’s Hong Kong team acted as the UK legal advisor to the issuer of this project. The team drafted the offering circular, participated in the negotiation and amendment of the transaction documents, arranged the closing, and provided legal services regarding the UK legal issues involved in the project throughout the process. JunHe’s Hong Kong team acted as the listing agent and provided services for the issuers in the listing of the bonds on the Hong Kong Stock Exchange.
The lead partner of this project was Chris Tang. Partner Lee, Alex Jao Jang also provided valuable support for this project.
