2026.02.26
On January 23, 2026, the Shanghai FTZ branch of the Industrial Bank (hereinafter referred to as the Issuer) successfully issued RMB 3 billion Magnolia bonds, due in 2029. The issuance had a coupon rate of 1.95% and was under the USD 5 billion Medium Term Note Program of Industrial Bank Co., Ltd. (this Project). They were then listed on the Hong Kong Stock Exchange. These were the market's first Magnolia bonds issued by a FTZ entity, signifying an expansion in the type of Magnolia bond issuers and opens a new channel for offshore financing by FTZ financial institutions.
Magnolia bonds are an innovative offshore bond launched by the Shanghai Clearing House in collaboration with Euroclear Bank and under the guidance of the People's Bank of China. This successful issuance provides a practical example for Shanghai to enhance its global resource allocation capabilities and build an international financial center. It injects new momentum into the exploration of the offshore RMB bond market and the cultivation of an overseas RMB asset pool.
The Issuer was established in December 2014 and is one of the first financial institutions to settle in the China (Shanghai) Pilot Free Trade Zone. Leveraging the comprehensive financial strengths of the Industrial Bank Group, the Issuer is positioned at the forefront of Free Trade Zone policies and specializes in cross-border finance, trade financing, fund settlement, and innovative services. It has achieved outstanding outcomes and possesses strong comprehensive service capabilities.
JunHe served as the international legal advisor and agent legal advisor for the underwriters in this Project. The firm drafted the entire set of transaction documents, maintained close communication and coordination with all parties, including the Shanghai Clearing House and Euroclear Bank, and advanced the drafting and signing of all the transaction documents. JunHe conducted due diligence, issued foreign legal opinions, and assisted in organizing the underwriting syndicate composed of multiple underwriters to successfully complete the pricing and issuance of the bond. Throughout this project, JunHe's team earned high trust and unanimous recognition from the Issuer, the underwriters, and the other intermediary institutions with its rigorous and efficient work style, solid professional service capabilities, and meticulous and dedicated service attitude.
The lead lawyer for this Project was SHI, Libin, and the partner in charge was Lee, Alex Jao Jang.
