Recently, JunHe as the international legal advisor of underwriters assisted Tianjin Lingang Investment Holding Co., Ltd. (“Tianjin Lingang”) to successfully issue an offshore US Dollar bond.
This bond was directly issued by Tianjin Lingang by adopting the structure of an irrevocable standby letter of credit guarantee provided by China ZheShang Bank, Tianjin Branch. The bond was issued according to Reg S, and was a fixed-rate credit enhancement bond, with the issuing scale of USD 68 million at an interest rate of 3.7% for an offering period of 3 years. The bond was listed on the Stock Exchange of Hong Kong on May 29, 2020. This project is the first credit enhancement of offshore bond issue in Tianjin by means of standby letters of credit in 2020.
Established in May 2007, Tianjin Lingang is a solely state-owned enterprise wholly owned by the State-owned Assets Supervision and Administration Commission of the Tianjin Binhai New Area and mainly engages in the construction, development and operation of supporting infrastructure as well as the construction and development of port facilities in Lingang Economic Zone. Tianjin Lingang Economic Zone is located in the southern shoal area of the Haihe River entrance to the sea at the gateway of the capital city Beijing and its environs. It is a new marine industrial city integrated with port industry formed by reclaiming land from the sea, with a planned total area of 200 square kilometers. It is one of the nine major functional zones of the national circular economy demonstration zone and the Binhai New Area, it is also one of the "double heavy" bases of Tianjin including heavy equipment manufacturing and heavy chemical industry. It is positioned as an ecological Lingang Economic Zone led by heavy equipment manufacturing in North China.