In December 2021, JunHe acted as the international legal advisor to the underwriters and trustees and assisted PingDingShan TianAn Coal Co. Ltd ("Ping Coal") in its successful issuance of offshore US Dollar Bonds.
The bond issue was structured with an irrevocable standby letter of credit guarantee provided by Nanyang Commercial Bank (China) Limited, Qingdao Branch, and was issued directly by Ping Coal. The bond issuance followed Reg S and was a fixed rate, credit enhanced bond with an issuance size of USD 100 million, an interest rate of 2.8% and an issuance term of 364 days. The bonds commenced listing on the Hong Kong Stock Exchange on 7 December 2021. This was the first recent US dollar bond issuance by a coal company in Henan Province and the first US dollar bond issuance by an industrial company in Henan Province this year.
PingDingShan TianAn Coal Co. Ltd was established on 17 March 1998 and was first listed on the Shanghai Stock Exchange on 23 November 2006. Its main business is coal mining, coal washing and processing and coal sales. It is the first mega coal base explored, designed and built by New China itself, and belongs to one of the 14 major coal production bases planned by the State Council, with excellent advantages in resources, operation and technology and equipment.
This bond is an innovative dual standby letter of credit backed issue structure. JunHe acted as the international legal advisor to the underwriters and the trustee for this project, designing the proposal for the dual standby letter of credit, drafting the full set of transaction documents, participating in the negotiation and amendment of the transaction documents, arranging the settlement, and providing legal services throughout the project in relation to the UK and Hong Kong legal issues involved in this project. JunHe won the recognition and trust of the underwriters and the other intermediaries with its, consistent rigorous and efficient work style and meticulous and dedicated service attitude and was well received by the client.