Investment group

Ashurst advised Guangzhou Development District Investment Group on US$400m offshore bond issue

Global law firm Ashurst advised Guangzhou Development District Investment Group Co., Ltd (Issuer) on its first offshore bond issue, for an aggregate principal amount of US$400 million. The Bonds are listed on the Hong Kong Stock Exchange, Chongwa (Macao) Financial Asset Exchange Co., Ltd. and Singapore Exchange Securities Trading Limited. Ashurst acted as counsel to the Issuer on English law and as listing agent for the Hong Kong and Macau listings of the Notes. The net proceeds of the issue will be used to fund eligible sustainability projects of the issuer’s group and for related working capital purposes.

Guangzhou Development District Investment Group is a leading state-owned industrial investment and operating platform in Guangzhou Development District, Guangzhou, Guangdong Province and is the only investment platform and transportation infrastructure construction project in Guangzhou Development District.

The bonds are issued as “sustainable bonds” within the framework of sustainable finance. These are the first USD-denominated offshore sustainability bonds issued in Guangzhou.

The Issuer has been assigned a corporate credit rating of “BBB+” with a stable outlook by Fitch, which is the highest international rating assigned to state-owned enterprises in southern China. The Bonds are rated “BBB+” by Fitch.

Melody He, Lead Partner, said, “We are delighted to act for Guangzhou Development District Investment Group Co., Ltd on their first offshore USD public bonds and to work with the co-lead managers to complete the transaction. . As Guangzhou’s first sustainable bond issue, this offering is a significant offering by a leading public company in southern China. We look forward to more opportunities to work with the company to support its continued growth, as well as opportunities to work with underwriters and other PRC issuers on more innovative international offerings. »

Senior Partner Jessica Li added, “We are very honored to be part of this important transaction, not only because of the high profile of the issuer and the tri-listing of the bonds on HKEx, MOX and SGX-ST, but also because it is Guangzhou’s first-ever USD sustainability bond issue. We look forward to assisting issuers and underwriters in similar future transactions and making our contribution to ESG funding by Chinese state-owned companies, especially those located in the Greater Bay Area of ​​China, in the international market for capital.

The transaction was led by partners Melody He and Jessica Li, supported by Janny Tai, Li Chen, Claire Chen, Jessica Chan, Chrystal Choy and Yejun Yang.

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