2024.02.26
In February 2024, Sichuan Jianzhou Airport Agricultural Investment and Development Group Co., Ltd. (“JAID”) issued 4.55 billion yen 3-year offshore credit-enhanced Yen bonds at a coupon rate of 3.30%. JunHe acted as the international legal counsel to the placement agents. This was the first-ever credit-enhanced yen bond issued by a credit enhancement agency and the first-ever offshore yen bond issued for rural revitalization in China. The bond issue was guaranteed by Tianfu Bond Insurance Co., Ltd.
JAID is a state-controlled company jointly funded by the State-owned Assets Administration Commission of Jianyang City and the Sichuan Provincial Finance Department. Its business covers investment in agricultural projects, developments in the agricultural industry, new rural construction, the construction of agricultural parks, the building of regional public brands of agricultural products, agricultural mechanization services, grain and oil storage services, and the demonstration and promotion of new agricultural technologies. JAID promotes the investment, construction and operation of agricultural and rural areas, the agriculture industry, urban agricultural superstores and the industrial functional zones of digital agriculture. It is committed to integrating farming, forestry, livestock and fishing resources, and building an agricultural service platform. It aims to build new patterns and forms of agriculture and rural areas compatible with the park city demonstration zone. It implements new development concepts, enhances the quality and efficiency of the agricultural sector, makes rural areas suitable to live and work in, and ensures that farmers are affluent and well-off. JAID is striving to become a modernized state-owned enterprise that leads rural revitalization. On June 30, 2023, China Chengxin (Asia Pacific) Credit Ratings Company Limited for the first time assigned JAID a long-term credit rating of BBBg- with a stable outlook.
JunHe acted as the international legal counsel to the placement agents. JunHe’s team drafted a full set of transaction documents for this bond issue, participated in the negotiation and revision of the transaction documents, conducted the due diligence, and arranged for the closing. They also provided whole-process legal services with respect to issues relating to English and Hong Kong laws.
The JunHe team was led by partner Chris Tang.
