King & Wood Mallesons (KWM) advised Shanghai Lingang Economic Development (Group) Co., Ltd. (Shanghai Lingang) as its international and PRC counsel on the debut issuance of its USD 300 million 4.625% guaranteed notes due 2021.
Shanghai Lingang, rated A- by Fitch and BBB+ by Standard & Poor’s, is the only large scale state-owned enterprise directly held by Shanghai Municipal State-owned Assets Supervision and Administration Commission that focuses on the investment, development and operation of industrial parks and the provision of related services. It also comprises a wide-ranging business portfolio with the majority of its park projects located in Shanghai, arguably the PRC’s most important international economic, financial, trade, shipping, and science and technology innovation centre and the bridgehead of the Belt and Road Initiative. Shanghai Lingang is also a key participant in the development of Tesla’s “Gigafactory” in Shanghai, which is expected to be the largest foreign invested manufacturing industry project.
This successful offering cements KWM’s growing presence in the Yangtze Delta Region, an important international gateway and one of the major contributors of China’s economy. In 2018, KWM advised Bank of Shanghai relating to its offering of USD 500 million 3.125% credit enhanced bonds and advised Jinjiang International Holding on its offering of EUR 500 million 0.817% credit enhanced bonds.
The KWM Hong Kong team was led by partners Hao Zhou and Michael Lu, and supported by counsel Cynthia Tan and associate Rachel Wang. The PRC team was led by Shanghai-based partner Liu Dongya whom was supported by associate Wang Xiaowei.