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JunHe Assisted Taiyuan Longcheng Development Investment Group Co., Ltd. to Complete the First Single Investment-Grade US Dollar Bond in Shanxi Province


In June 2020, Taiyuan Longcheng Development Investment Group Co., Ltd.  (hereinafter referred to as "Longcheng Group") issued US $300 million offshore bonds with coupon rate of 3.70% and the maturity period of three years. The bonds have been listed on the Stock Exchange of Hong Kong on June 29, 2020.

Established in October 2008, Longcheng Group is a large-scale wholly state-owned enterprise subordinate to Taiyuan municipal government, which is also a key government investment implementation vehicle of Taiyuan City, a constructor of major projects, and an operator entity of urban infrastructure. Through the development of more than ten years, the company has formed eight primary business segments, namely affordable housing construction, cultural tourism, commercial real estate, investment and financing, new energy transportation and parking resources management, operational business, property management and education.

This project is the first investment-grade US dollar bonds in Shanxi province. The issue was warmly welcomed by the market; it was oversubscribed by nearly 4 times, and the final price was 50 bps lower than the initial base price. JunHe, acting as the UK counsel for the issuer and the listing agent of Hong Kong bonds, provided the client with services in respect of issuance structure, circular, transaction documents and other relevant matters as well as application for listing of bonds.

The leading partner of this case is YU, Yongqiang (YY) and Chris Tang; Lee, Alex Jao Jang also provided strong support on this project.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.