Recently, JunHe acted as International legal counsel for the underwriter and assisted Zunyi Road and Bridge Engineering Co., Ltd. (followed as “the company”) in its issuance of offshore dollar bonds to the amount of USD 159 million twice.
The issuing structures of the two bonds are distinct and the issuing intervals are relatively short. The first issuance adopted a structure that domestics entity issue bonds directly while the second issuance adopted a structure that the Chongqing Bank offered irrevocable stand-by credit for vouching. The JunHe team made full use of internal resources to ensure high-quality legal services meet the different demands of the two bonds under a tough timetable. What is worth mentioning is that the second bond was the first dollar bond issued by means of stand-by credit in the Guizhou Province and with the lowest face interest rate (4.6%) and the most subscriptions (5 times over claimed) through the stand-by credit letter adding method in recent 2 years among the synchronous Chinese-funded dollar bonds.
The company was founded in 1993 and is wholly owned by Zunyi SASAC, it is one of the top 4 SOEs built and planned by the Zunyi municipal government. It is restructured from the former Zunyi Road and Bridge Engineering Co., Ltd., Zunyi New District Construction and Development Co., Ltd and Zunyi Xiang River Investment Limited, and now is the largest-scale and relatively strong general SOE in Zunyi.
JunHe acted as British legal counsel for the underwriter and drafted a whole set of deal documents for the two bonds, participated in the negotiations and modifications of the deal documents, delivered and related British legal issues.