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Allen & Overy advises on tri-listed USD400 million notes issuance with credit enhancement provided by Sichuan Development Holding Co., Ltd.

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Lee John
John Lee

Registered Foreign Lawyer, E&W

Hong Kong

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Li Jessica
Jessica Li

Of Counsel

Hong Kong

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Madhu Mirpuri

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19 August 2021

Allen & Overy has advised the joint lead managers on the issuance of USD400 million 2.80% notes due 2026 by Yieldking Investment Limited. 

The issuance marks the first ever bond issuance by a Chinese state-owned corporate entity to have been listed on the Hong Kong Stock Exchange (HKEX), Chongwa (Macao) Financial Asset Exchange (MOX) and Bourse de Luxembourg (LuxSE) since the signing of a memorandum of understanding by MOX and LuxSE to allow two-way bond listing in January 2020.

The notes are unconditionally and irrevocably guaranteed by Sichuan Development International Holding Company Limited with the benefit of a Keepwell Deed and a Deed of Equity Interest Purchase Undertaking provided by Sichuan Development Holding Co., Ltd. (四川发展(控股)有限责任公司) (SDH).

This issuance creates the market-first for a one-stop listing of overseas bonds in Macau and Luxembourg, which in turn boosts the deepening of financial cooperation between Macau, Sichuan and Luxembourg. It sets a market precedent for key Chinese local state-owned enterprises to list offshore bonds and take advantage of the diversified pools of funds from multi-jurisdictional investors, and demonstrates significant innovation in terms of cooperation between Belt & Road countries in matters affecting the financial sector.

SDH is one of China’s largest local state-owned conglomerates with businesses in transportation infrastructure construction and operation, general trading, power generation and supply, media and culture through more than 1,500 subsidiaries and joint ventures across the Greater China region.

Partner John Lee commented: “Over the years Allen & Overy has established a close business relationship with SDH. This transaction is another milestone for SDH to participate in and utilise the international capital markets, and once again demonstrates its high-quality credit to international investors.”

The A&O team was led by partner John Lee and Of Counsel Jessica Li, with support from Claire Chen, Rachel Cheung and Hiu Wing Kwok.

Disclaimer:

The information contained herein is restricted and is not for publication, distribution or release in or into the United States of America, Australia, Canada, Japan or South Africa. This announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. The securities referred to herein (the "Securities") have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not, subject to certain exceptions, be offered or sold in the United States or to or for the account or benefit of a person located in the United States.