2022.03.07
In March 2022, JunHe assisted Quzhou State-owned Capital Operation Co., Ltd. (“QSCO”) in its issuance of sustainable USD bonds and its listing on the Hong Kong Stock Exchange. JunHe acted as the PRC and foreign legal counsel and the listing agent for the issuer.
This issuance was made by QSCO directly. In line with Regulation S, senior, unsecured and fixed rate bonds were issued in the amount of USD 470,000,000, at an interest rate of 3.00%, for a term of three years. The bonds were rated as “BBB-” by Fitch Ratings. QSCO’s sustainable financing framework obtained a “full compliance” opinion from S&P Global Ratings. This was the largest issuance of foreign bonds and the first issuance of sustainable development bonds in Quzhou, and the largest issuance of foreign bonds on the same-level platform in the past 12 months. The value of the peak subscription orders was as high as USD 1.35 billion, which tripled the issuance amount. The final bond price was 35 basis points narrower than the initial guiding price. The bonds were listed on the Hong Kong Stock Exchange (“HKEX”) on March 3, 2022.
QSCO was founded in April 1999 and is a wholly State-owned limited liability company directly subordinated to the State-owned Assets Supervision and Administration Commission of Quzhou People’s Government. After years of development, QSCO has acquired assets and established a greater presence in many important areas such as urban infrastructure and public utility investment, financing, construction and operation, commodity retail, hotel operations and other operational business. QSCO has become the biggest company involved in infrastructure construction and State-owned assets operation in Quzhou, and it plays a leading role in infrastructure construction.
JunHe’s team acted as PRC legal counsel, foreign legal counsel and the listing agent of the issuer. The PRC legal team conducted due diligence on QSCO and its domestic subsidiaries, issued PRC legal opinion on this project, reviewed and revised the transaction documents, and provided full legal services on all the PRC legal issues involved in this project. JunHe’s foreign legal team drafted the Bond Circular, participated in the negotiation and revision of the transaction documents, arranged for closing, and provided full legal services on all the foreign legal issues involved in this project. As the listing agent, JunHe also advised the issuer on the HKEX listing.
This project is another representative case in how JunHe provides “one-stop” legal services to clients by using the combined efforts of its domestic and overseas teams. JunHe’s domestic and overseas offices were able to work closely so that efficiency was remarkably improved, speeding up communication time and reducing costs for the client. JunHe was recognized by the client and the other intermediaries for its consistent working style, precise and highly detailed work attitude, and the team’s passionate and professional approach in all areas.
The leading partner of the PRC legal team was YU, Yongqiang (YY), and the leading partner of the foreign legal team was Tang Chris Tang.
