In June 2020, Junhe，as the international legal adviser to the underwriter, helped Jiangsu Yueda Group Co., Ltd. (hereinafter referred as “Yueda Group”) to successfully issue offshore US dollar bonds.
The structure of the bond issuance is that the bonds are directly issued by the onshore entity, Yueda Group. The Reg S bonds were issued on a fixed-rate basis with the size of USD 100 million, an interest rate of 5.70% and a three-year maturity period. Such bonds were listed on the SEHK from June 5, 2020.
Founded in 1989, Yueda Group is a wholly state-owned company invested and established by the government of Yancheng City, and its management function is delegated to the SASAC of Yancheng City. The registered capital of the company is one billion yuan. Its business covers manufacturing of tractors, special purpose vehicles and imitation industrial products, investment in infrastructures mainly including expressways, investment in mineral resources mainly including coal mines and non-ferrous metal mines, and modern service industries mainly including trading and real estate.
JunHe served as the underwriter's international legal advisor for the project, drafted the complete set of transaction documents for the bonds, negotiated and amended the transaction documents, arranged the closing, and provided full ranged legal services on the legal issues of UK and Hong Kong involved in the project.