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

Allen & Overy has once again advised the joint lead managers and joint bookrunners on the issuance of RMB5 billion (approximately USD680 million) offshore multi-tranche bonds by the People’s Government of Shenzhen Municipality of Guangdong Province of the People’s Republic of China (Shenzhen Municipal People’s Government), following its successful inaugural offshore bond issuance in 2021. 

The new issuance comprises three tranches including RMB2.4bn 2.42% 2-year bonds, RMB1.5bn 2.65% 3-year bonds and RMB1.1bn 2.83% 5-year bonds. The 3-year and 5-year special bonds are green bonds and blue bonds, respectively with the net proceeds to be used to finance eligible projects in accordance with the Green and Blue Finance Framework of Shenzhen Municipal People’s Government.

Partner Agnes Tsang commented: “The successful bond issuance demonstrates Hong Kong’s unique position as a green and sustainable financial hub in the Guangdong-Hong Kong-Macao Greater Bay Area. We are honoured to support the Shenzhen Municipal People’s Government again and look forward to continuously making our contribution to green financing in the GBA.”

The joint lead managers and joint bookrunners for Shenzhen Municipal People’s Government’s bond issuance comprise: Bank of China, China International Capital Corporation, HSBC, CITIC Securities, Bank of Communications, Agricultural Bank of China Limited Hong Kong Branch, ICBC (Asia), Industrial Bank Co., Ltd. Hong Kong Branch, China CITIC Bank International, China Construction Bank (Asia), J.P. Morgan, CMB Wing Lung Bank Limited, Guotai Junan International, Mizuho, Standard Chartered Bank, Shenwan Hongyuan (H.K.), Huatai International, China Minsheng Banking Corp., Ltd., Hong Kong Branch, Guosen Securities (HK), Citigroup, China Everbright Bank Hong Kong Branch, CTBC Bank, Haitong International, China PA Securities (Hong Kong) Company Limited, and Shanghai Pudong Development Bank Hong Kong Branch.

The A&O deal team was led by partners Agnes Tsang and Jaclyn Yeap, with support from Jiayin Yu, Erica Lo, Gordon Ng and Eileen Qu.

A&O previously advised on Shenzhen Municipal People’s Government’s first offshore RMB bond issuance in Hong Kong, which marks the first RMB-denominated offshore bonds issued by municipal government in mainland China.