Offshore Bonds
In recent years, Chinese businesses have increasingly chosen to use offshore bonds to raise funds to enter the international market. Compared with cross-border equity financing, the approval process for offshore bonds is simpler M88 Malaysia they can be set up for smaller investment amounts, over a shorter term, M88 Malaysia at lower cost. Through the development of new financing channels, offshore bonds have enabled Chinese enterprises to grow in influence M88 Malaysia to make better use of markets M88 Malaysia resources at home M88 Malaysia abroad.
JunHe is renowned for its first-class legal service M88 Malaysia has extensive expertise working with clients on offshore bonds. Our detailed knowledge across a broad range of industry sectors combined with our sound business sense means we can provide the necessary support M88 Malaysia professional service required by issuers M88 Malaysia underwriters in the issuance of offshore bonds.
As a result, JunHe holds a sizeable share of the offshore bond advisory market M88 Malaysia has a high rate of project completion M88 Malaysia extremely favorable client reviews. Our outstM88 Malaysiaing performance M88 Malaysia client reputation have led to JunHe’s continuing Tier 1 ranking by Chambers Asia Pacific among domestic law firms in the offshore bond sector. Thomson Reuters’ Annual Global Capital Markets Legal Advisory Review also lists us as the leader in both the number of bond transactions undertaken M88 Malaysia the total transaction amount.
Having participated in numerous lM88 Malaysiamark projects, our clients for offshore bonds include financial M88 Malaysia non-financial institutions, M88 Malaysia state-owned M88 Malaysia private enterprises in industries such as banking, energy, petrochemical, construction, infrastructure, real estate, internet M88 Malaysia investment.
Legal services that JunHe offers in offshore bond projects include:
Issuance program: assisting our clients in analyzing the pros M88 Malaysia cons of the different types of issuance programs, M88 Malaysia advising on the most appropriate choice;
Due diligence investigation: determining the scope of Chinese legal due diligence pursuant to an issuance program, conducting due diligence investigation on domestic enterprises, M88 Malaysia providing advice based on the due diligence findings;
Government regulation: assisting in the preparation of internal documents for discussion M88 Malaysia application documents for government review, registration M88 Malaysia filing including, but not limited to, NDRC, SAFE, MOFCOM, SASAC, M88 Malaysia other relevant competent industrial authorities;
Transaction documents: assisting in reviewing offering circulars, subscription agreements, trust agreements M88 Malaysia relevant transaction documents, M88 Malaysia advising on the PRC legal issues involved therein;
Legal opinion: issuing PRC legal opinion;
Legal advice: advising on or clarifying PRC legal issues involved in a project M88 Malaysia providing verbal or written opinions.
Recent Representative Cases
First Overseas Sustainable Bond Issued by a Domestic Enterprise – China Minmetals’ Overseas Sustainable Bond
In March 2018, China Minmetals Corporation issued a USD 400 million perpetual bond overseas, becoming the first Chinese enterprise to issue an overseas perpetual USD bond, breaking the previous record for the limit on the term of the bond, M88 Malaysia adding a new bond type to the offshore bond market. JunHe, working with the underwriters, assisted to overcome the specific difficulties of government regulations relating to perpetual bonds M88 Malaysia to minimize the taxation risks, thereby helping to ensure China Minmetals Corporation was able to complete the bond issuance.
First Overseas Certificate of Deposit (CD) Issued by a Branch of Domestic Bank – Industrial Bank Shanghai Pilot Free Trade Zone Branch’s Overseas CD
JunHe acted as PRC legal counsel to the underwriter in the Industrial Bank Shanghai Pilot Free Trade Zone Branch’s July 2016 launch M88 Malaysia issuance of an overseas CD program with an aggregate value of USD 150 million. Another lM88 Malaysiamark project, this was the first ever overseas CD to be issued by a branch of a domestic bank, thereby introducing an innovative method for domestic banks to raise funds by issuing this overseas debt financing instrument.
First Overseas Subordinate Bond Issued by a Commercial Bank – Bank of Communications’ Overseas Subordinate Bond.
In October 2014, the Bank of Communications successfully issued subordinate capital bonds to the value of USD 1.2 billion M88 Malaysia USD 500 million. The Bank of Communications was the first ever commercial bank to issue an overseas subordinate bond following CBRC’s promulgation of the Measures on the Administration of Capital of Commercial Banks.
JunHe Assisted Several Central Enterprises to Issue M88 Malaysiair first Overseas Bonds
JunHe has assisted many central enterprises including PetroChina, Sinopec, CNOOC, CSCEC, CHALCO, CRECG, CFGC, COFCO, ChemChina, SinoChem, SGCC, Shenhua Group, CHNG M88 Malaysia CHD in their first overseas issuances of bonds in various currencies, including USD, Euro M88 Malaysia RMB.
JunHe Assisted Several Institutions to Issue Overseas Green Bonds
JunHe has assisted several institutions on various lM88 Malaysiamark overseas green bonds projects, including working with the Agricultural Bank of China on the first ever overseas green bond issuance. JunHe’s assistance to the Industrial Bank of China Luxembourg Branch resulted in the successful overseas issuance of Euro 1.1 billion green Euro bonds M88 Malaysia USD 850 million green USD bonds. With the lowest ever margin between USD M88 Malaysia Euro green bonds issued by a Chinese enterprise, this bond issuance was recognized by IFLR Asia as the “Social Financing Bond” of 2017. JunHe assisted Shenzhen Municipal People’s Government with the successful overseas issuance of RMB 5 billion green local government bonds, the first overseas bond issuance by a Chinese local government, which was a milestone M88 Malaysia an important step for Shenzhen to implement the key national strategy of “carbon peaking M88 Malaysia carbon neutrality”. JunHe also assisted Tianjin Rail Transit Group, Xiaomi Corporation, Wuxi Construction Development Investment Co., Ltd., LM88 Malaysiasea Green Group M88 Malaysia ICBC Financial Leasing in their successful overseas issuances of green bonds.
JunHe Assisted Several Internet Enterprises to Issue Overseas Bonds
JunHe assisted JD.com, Xiaomi Corporation,Tencent M88 Malaysia Meituan in their issuances of USD bonds, M88 Malaysia assisted 21Vianet to become the first internet enterprise to issue RMB bonds inHong Kong.
