King & Wood Mallesons advises on CATL’s USD 1.5 billion debut offshore bond issuance

On 17 September 2020, Contemporary Ruiding Development Limited, a wholly owned subsidiary established by Contemporary Amperex Technology Co., Limited (CATL) in the British Virgin Islands, issued USD 1.5 billion dual-tranche senior unsecured bonds in overseas market, guaranteed by CATL. The money to be raised in the 5-year and 10-year tranches are expected to amount to USD 1 billion and USD 500 million respectively, with coupon rates of 1.875% and 2.625%. This is the largest single debut issuance of US dollar bond issued by a Chinese enterprise since 2017 pursuant to Regulation S under the U. S. Securities Act, and the largest US dollar bond issuance made by a Chinese private enterprise so far this year under Regulation S. The bond is oversubscribed by over 9 times, with both of its tranches breaking the record for the lowest coupon rates for US dollar bonds issued by Chinese private enterprises under Regulation S.

CATL is the world's leading provider of power battery system focusing on R&D, production and sales of new energy EV battery and energy storage systems, and is committed to providing the best solutions to global application of new energy. In this issuance, CATL was rated Baa1, BBB+, and BBB+ respectively by the three major international credit rating agencies, namely Moody's, S&P, and Fitch. The offering marks CATL's first bond issuance in overseas market and also a milestone for offshore bond issuance of domestic new energy enterprises.

Acting as the PRC counsel for the issuer, King & Wood Mallesons (KWM) advised the client in completing due diligence, reviewing the offering circular and transaction documents, issuing legal opinions, etc. The KWM team provided the client with comprehensive, professional, high-quality, and efficient legal services, fully proving its proficiency and client recognition in the international bonds and capital markets.

This project was co-led by partners Wang Kaiding and Song Yanyan, and supported by Dong Yangguang, Tang Xinran, Liu Jia, and Ji Yuhan.