KWM HK advises on over 20 debt offerings in past two months, maintaining strong momentum in offshore debt issuance

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King & Wood Mallesons Hong Kong-based debt capital markets (DCM) team has continued to maintain strong momentum despite the pandemic, having advised on more than 20 high-profile debt offerings in the past two months, worth approximately US$5.6 billion. The team acted for the underwriters or issuers in respect of US law, English law and the laws of Hong Kong SAR.

In the high-yield debt space, KWM advised many seasoned issuers in the real estate and industrial sectors on their debut issuance or liability management transactions. For example, the team recently advised Yango Group Co., Ltd. on its innovative US$270 million "green bond" offering.

KWM was also involved in a number of high-profile debut issuance and ground-breaking investment grade bond offerings, including:

  • advising Industrial Bank Co., Ltd.兴业银行股份有限公司)in connection with its issuance US dollar and Hong Kong dollar dual-tranche senior notes with an aggregate principal amount equivalent to US$837 million, marking the first "blue bond" offering by a PRC joint-stock bank and the first bond by a PRC corporate eligible for the Hong Kong Quality Assurance Agency's (HKQAA) COVID-19 Resilience Finance Certification Scheme.

  • Debut offshore issuances:
    • advising the lead managers in connection with China Merchants Commerce Financial Leasing Co., Ltd.'s(招商局通商融资租赁有限公司)US$350 million guaranteed bonds;
    • advising the lead managers in connection with China Everbright Limited's(中国光大控股有限公司)US$300 million senior perpetual capital securities;
    • advising Wens Foodstuff Group Co., Ltd.(温氏食品集团股份有限公司)in connection with its US$600 million dual-tranche bonds; and
    • advising Central China Securities Co., Ltd.(中原证券股份有限公司)in connection with its US$110 million bonds.
  • Repeat offerings from leading local state-owned enterprise:
    • advising Bank of Shanghai Co., Ltd.(上海银行股份有限公司)in connection with its US$200 million credit enhanced senior notes;
    • advising Zhuhai Huafa Group Co., Ltd.(珠海华发集团有限公司)in connection with its US$250 million guaranteed bonds;
    • advising Qingdao Conson Development (Group) Co., Ltd.(青岛国信发展(集团)有限责任公司)in connection with its US$500 million guaranteed bonds;
    • advising Guangxi Investment Group Co., Ltd.(广西投资集团有限公司)and Guangxi Financial Investment Group(广西金融投资集团有限公司)in connection with the offering of the US$400 million guaranteed bonds; and
    • advising Shandong Marine Group Ltd.(山东海洋集团有限公司)in connection with its US$200 million guaranteed bonds.

The transactions were led by Hong Kong-based partners Hao Zhou, Richard Mazzochi and Michael Lu.

In recent years, the KWM DCM practice has grown to become one of the largest and most active practices in Hong Kong with a team of more than 25 lawyers experienced in a wide range of offshore debt securities products. The firm has been consecutively awarded "Hong Kong Firm of the Year" by FinanceAsia Awards, a financial and capital markets focused publication that recognises the best law firms, banks and brokers in Asia's key markets and was named "Best International Debt Capital Markets Firm of the Year" based on the votes of users of Wallstreet Trader in the past three years (2017-2019).

 *Any reference to "Hong Kong" or "Hong Kong SAR" shall be construed as a reference to "Hong Kong Special Administrative Region of the People's Republic of China".