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Allen & Overy advised Air Liquide on its first bond issuance on the Chinese domestic market (Panda)

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Julien Sebastien

Partner

Paris

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Tsang Agnes
Agnes Tsang

Partner

Hong Kong

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Lorraine Miramond

Senior Associate

Paris

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Quentin Herry

Senior Associate

Paris

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15 March 2018

​Allen & Overy Paris advised Air Liquide, the world leader in gases, technologies and services for Industry and Health, on its first bond issuance on the Chinese domestic market for an aggregate nominal amount of 2.2 billion Renminbi (approximately 280 million euros). Air Liquide becomes therefore one of the first European companies to issue on this market.

This transaction was executed in two series via a private placement to Chinese institutional investors and bears of 5.95% and 6.40% respectively for a 3-year and a 5-year maturity. The 5-year issuance is the longest maturity ever achieved by a European company on the Panda market.

The bonds are being issued by Air Liquide Finance and guaranteed by L’Air Liquide SA, with the following principal characteristics:

  • Nominal amount: 2.2 billion de Renminbi, in two series
  • Issuer: Air Liquide Finance
  • Guarantor: L’Air Liquide SA
  • Terms: 3 and 5 years
  • Format: Fixed rate
  • Coupons (payable annually):
    • 5.95% at 3 years (1,400 million de Renminbi)
    • 6.40% at 5 years (800 million de Renminbi)

The A&O team was led by Paris ICM partner Julien Sébastien and Hong Kong ICM Partner Agnes Tsang with assistance from ICM associates Tiffany Tse, Lorraine Miramond and Quentin Herry. JunHe provided PRC local law advice.

Agnes and Julien said: “We are very pleased to have advised Air Liquide on this transaction which is the first guaranteed issuance by a foreign issuer in the Chinese domestic market. We have worked closely with our client to resolve issues unique to this market, bridging the gap between China’s interbank bond market and international financial markets”.  

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