2025.08.21
On May 22, 2025, Shandong Yi River Holdings Group (Yi River Holdings) successfully issued Magnolia Bonds with a cross-border guarantee issuance structure. The issuance scale was USD 84.45 million, with a term of three years and a coupon rate of 5.99%. These were the first-ever Magnolia Bonds denominated in US dollars by a non-financial enterprise, the first Magnolia Bonds issued by a county-level enterprise nationwide, the first Magnolia Bonds issued in Shandong Province, and the first successfully issued Magnolia Bonds in the market in 2025. On June 25, 2025, Yi River Holdings successfully issued more Magnolia Bonds with an issuance scale of USD 55 million, a term of three years and a coupon rate of 5.99%. JunHe served as the sole international legal counsel, financial agent legal counsel, and listing agent for Yi River Holdings in this issuance of Magnolia Bonds.
Linyi City is located in southeastern Shandong Province and is the largest and most populous prefecture-level city in the province. Yi River Holdings is the core state-owned platform in the Yi River New District of Linyi City, with businesses covering infrastructure, industrial investment and park operations. Its domestic credit rating is AA+, and its international credit rating is BBB+. The issuance of these Magnolia Bonds not only optimized its debt structure but also introduced international capital to the region, aiding the implementation of the urban investment transformation to its industrial investment strategy.
The Magnolia Bond is an innovative overseas bond product launched by the Shanghai Clearing House in collaboration with Euroclear under the guidance of the People's Bank of China. The two parties have established a financial infrastructure connection to jointly provide registration, custody and settlement services for Chinese issuers and overseas investors. This bond features good market liquidity, a broad investor base and a convenient issuance mechanism. The successful issuance of Yi River Holdings' Magnolia Bonds is the latest achievement in exploring regional markets, creating a Shandong model for Magnolia Bonds, supporting efficient financing for real enterprises, and demonstrating the vigorous vitality and broad development prospects of Magnolia Bonds in complex domestic and international environments.
As the sole international legal counsel, financial agent legal counsel, and listing agent for Yi River Holdings' Magnolia Bonds, JunHe not only completed routine tasks such as assisting with due diligence, issuing legal opinions and applying for listing in overseas bond projects but also drafted multiple clauses of the transaction documents in the context of the few prior cases of Magnolia Bond issuance. JunHe communicated and coordinated with all the parties, including the Shanghai Clearing House and Euroclear, to quickly and efficiently finalize and sign the full set of transaction documents. They also assisted in organizing a syndicate of multiple underwriters to successfully complete the pricing and issuance of the bond, providing comprehensive legal services for all the legal issues in the project. The JunHe team earned high trust and unanimous recognition from the issuer, underwriters and other intermediaries with their rigorous and efficient work style, solid professional capabilities, and meticulous and dedicated service attitude.
The project was led by Ms.SHI, Libin and Lee, Alex Jao Jang.
JunHe boasts extensive legal service experience in Magnolia Bond issuances. In November 2024, JunHe served as the Chinese law legal counsel, international law legal counsel, and listing agent for the issuer, assisting Wuxi Construction Development Investment in successfully issuing the world's first non-financial enterprise Magnolia Bonds, which were simultaneously listed on the stock exchanges of Hong Kong, Macau and Frankfurt. The Chinese legal counsel team was led by partner Mr.YU, Yongqiang (YY), with partner Ms. SUN, Fengmin as the main handler. The British law legal counsel team was led by partner Mr.Chris Tang.
