2026.04.30
In April, 2026, Zhangzhou Jiulongjiang Group Co., Ltd. (Jiulongjiang Group) successfully issued Magnolia Bonds with a scale of RMB 310 million, with a term of 3 years and a coupon rate of 2.45%. This issuance received active subscription and positive feedback from investors, setting a new low for the offshore RMB bond interest rate of local state-owned enterprises in Fujian Province. This was the first time a local state-owned enterprise in Fujian Province has used the Magnolia Bond issuance model for bond financing, utilizing the cross-border cooperation services of financial infrastructure between the Shanghai Clearing House and Euroclear to issue bonds to the international market, making a substantial contribution to financial innovation in the region.
Jiulongjiang Group is an important industrial investment and financing entity of Zhangzhou's municipal government. Its subsidiaries include the listed companies Pientzehuang (600436.SH) and Longxi Shares (600592.SH), and it is mainly engaged in the manufacturing of traditional Chinese medicine and bearings. The group also participates in the development of industrial parks and investment in industrial projects in Zhangzhou City. It holds the exclusive production process for the nationally protected traditional Chinese medicine Pientzehuang, which is listed as a national intangible cultural heritage product, due to its traditional manufacturing techniques and prescriptions.
JunHe served as the domestic legal advisor for the underwriter in this project. With high-quality, rigorous and efficient legal services, we overcame a series of challenges including tight timelines and a heavy workload. JunHe's team completed domestic legal due diligence, reviewed transaction documents, issued Chinese legal opinions and assisted the company in obtaining internal and external approvals, ultimately helping Jiulongjiang Group successfully issue Fujian Province's first state-owned enterprise Magnolia Bonds. JunHe's consistent rigorous and efficient work style, along with our meticulous and dedicated service attitude, earned recognition and trust from the company and other intermediary institutions.
The lead partner for this project was YU, Yongqiang (YY) and the internal review partner was CHEN, Yan.
