2021.11.15
In November 2021, Suzhou Industrial Park State-Owned Assets Holding Development Co., Ltd. (SIP Holding) successfully issued 5+5-year offshore bonds worth RMB 1 billion in the Shanghai Free Trade Zone at an interest rate of 3.6% (FTZ Bonds). China Central Depository & Clearing Company (CCDC) was the custody, registration and clearing institution.
Founded in 1994, SIP Holding is a state-owned enterprise wholly owned by the Suzhou Industrial Park Management Committee and the Jiangsu Provincial Department of Finance. The company engages in the operation of state-owned assets as authorized by the State-owned Assets Supervision and Administration Commission of Suzhou Industrial Park.
The FTZ Bonds issued by SIP Holding have the longest term and the lowest rate among all RMB bonds issued in any of the free trade zones in China so far. JunHe, acting as the PRC legal counsel to the underwriter, provided high-quality, rigorous and efficient legal services to the client. They advised on the design of the transaction structure, coordinated communications with the PRC regulators liaised with the CCDC to determine the service agreement, account opening, and fund reflows. JunHe’s team directed the PRC legal due diligence and issued legal opinions regarding PRC laws, assisted the issuer with the internal and external approval processes, and reviewed the transaction documents from a Chinese legal perspective. JunHe’s hard-work, state-of-the-art legal expertise and successful results earned the recognition and trust of the client and the other intermediaries.
Partners YU, Yongqiang (YY) and LEI, Tianxiao led the firm’s deal team with the support of Partner CHEN, Guiyang (internal control).
