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Allen & Overy advises on Shenzhen Municipal Government’s first offshore RMB bond issuance

Allen & Overy has advised the joint lead managers and joint bookrunners on the issuance of RMB5 billion (USD775 million) offshore multi-tranche RMB bonds by the People’s Government of Shenzhen Municipality of Guangdong Province of the People’s Republic of China (Shenzhen Municipal Government). This marks Shenzhen Municipal Government’s first offshore bond offering, as well as the first time a PRC municipal government issues RMB-denominated offshore bonds in Hong Kong.

The issuance comprises three tranches including RMB1.1bn 2-year general bonds as well as RMB1.5bn 3-year and RMB2.4bn five-year special bonds. The three-year and five-year special bonds are green bonds and the net proceeds of which will be used to finance clean transportation projects, water treatment projects and sponge city related projects in accordance with the Green Finance Framework of Shenzhen Municipal Government.

Partner Agnes Tsang who led the transaction commented: “This bond issuance deepens financial cooperation between Shenzhen and Hong Kong and further promotes the development of green finance in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). We are very proud to be involved in this landmark transaction.”

The A&O team advised Bank of China, Standard Chartered Bank, China International Capital Corporation, CLSA, Bank of Communications, China Construction Bank (Asia), China Merchants Securities (HK), China Minsheng Banking Corp., Ltd., Hong Kong Branch, China PA Securities (Hong Kong) Company Limited, Citigroup, CMB International, Crédit Agricole CIB, Guosen Securities (HK), ICBC (Asia), J.P. Morgan and Mizuho Securities. The A&O deal team comprised partners Agnes Tsang and Jaclyn Yeap and lawyers Jiayin Yu, Erica Lo and Gordon Ng.