2022.09.30
On September 13, 2022, Zhengzhou Real Estate Group Co., Ltd. (“Zhengzhou Real Estate Group”) successfully issued USD 350 million fixed-interest offshore USD bonds with a coupon rate of 5.1%. On September 21, 2022, Zhengzhou Real Estate Group successfully issued RMB 1 billion Free Trade Zone (“FTZ”) offshore RMB bonds with a coupon rate of 5%. These are the first investment grade FTZ RMB bonds ever issued by a company in the mid-west region of China.
This is the first time that Zhengzhou Real Estate Group has issued offshore bonds in dual varieties and had the bonds listed on the Stock Exchange of Hong Kong and the Singapore Exchange. The issuance sets a new benchmark for State-owned enterprises in Henan Province and proactively connects overseas capital markets while promoting internationalisation practices.
Zhengzhou Real Estate Group is an enterprise solely funded by the state. It is under the administration of the Zhengzhou State-owned Assets Supervision and Administration Commission and is one of three government-owned bodies for land development and consolidation in Zhengzhou Municipality. Since its establishment, Zhengzhou Real Estate Group has engaged in various projects such as housing demolition and relocation, comprehensive land development, municipal road construction, urban infrastructure development and housing placement. The company plays an important role in the urban construction and development of Zhengzhou.
W88优德官方网站 was the onshore legal counsel to the underwriter of this Project and assisted in the issuances of both the USD bonds and the FTZ RMB bonds. The team conducted onshore legal due diligence investigations, rendered legal opinion on Chinese law, reviewed the transaction documents and provided legal analysis on difficult issues related to the issuance of the FTZ bonds. Ultimately, Zhengzhou Real Estate Group successfully issued the USD bonds and FTZ RMB bonds thanks to W88优德官方网站’s assistance.
The W88优德官方网站 team for this project was led by partner YU, Yongqiang (YY), and the work product was internally reviewed by partner CHEN, Yi.
