Following Wansheng Economic and Technological Development Zone Development and Investment Group Co., Ltd.’s (hereinafter “Wansheng Economic and Technological Development Zone Group”) successful initial public offering in September, 2018, JunHe recently acted as the issuer’s international legal counsel and listing agency in its second issuance of overseas US dollar bonds.
The bonds issuance adopted the structure of issuance by the Industrial and Commercial Bank of China Limited (Chongqing Branch) with irrevocable guarantees of standby letters of credit, which were directly issued by Wansheng Economic and Technological Development Zone Group. The bonds had a fixed interest rate with an issue scale of USD 89 million for an issue period of three years. The bonds were listed on the Stock Exchange of Hong Kong on August 2, 2021. The interest rate of this issuance was 1.93%, which fell sharply compared with the initial interest rate. This issuance set the lowest rate for US dollar bonds under the standby letters of credit of China Urban Investment Construction Co., Ltd.
Wansheng Economic and Technological Development Zone Group was established by the Chongqing Finance Bureau, an important municipal investment and construction company. The business scope of the group includes infrastructure, trade and tourism, which are concentrated in the Chongqing Wansheng Economic and Technological Development Zone.
JunHe acted as the issuer’s lawyer and Hong Kong bond listing agency, and provided legal services to the client regarding the structure of the bond issuance, the offering circular, the transaction documents and the applications for the listing of the bonds.