w88win优德中文版 Assisted in the first Issuance of Offshore RMB Local Government Bonds by the People’s Government of Hainan Province and the second Issuance of Offshore RMB Local Government Bonds by the Shenzhen Municipal People‘s Government

Recently, the People's Government of Hainan Province issued RMB 5 billion offshore local government bonds on the Stock Exchange of Hong Kong, successfully making its debut in the international capital market. This included RMB 1.2 billion 2-year blue bonds, RMB 2.6 billion 3-year sustainable development bonds and RMB 1.2 billion 5-year sustainable development bonds.  

The funds raised will be invested in marine protection projects, green economic development projects and secure livelihood projects in key areas. This was the first time that a Chinese local government has issued blue bonds and sustainable development bonds in the international capital market. This issuance further expands Hainan’s financing channels in overseas capital markets and enriches the types of bonds in the offshore RMB bond market. It is another demonstration of Hainan’s innovative practice to promote the internationalization of the RMB while building a free trade port. The issuance plays a positive role in strengthening marine ecological construction and environmental protection, improving the ecological environment of urban water systems and the quality of life of urban and rural residents. It is also a targeted measure to further implement the national marine development strategy and promote green, circular and sustainable development in the area.

On November 7, 2022, the Shenzhen Municipal People's Government successfully issued RMB 5 billion offshore RMB local government bonds. This is the Shenzhen Municipal People’s Government’s second issuance in Hong Kong since issuing offshore RMB bonds in 2021. The local government bonds issued this time include RMB 2.4 billion 2-year bonds, RMB 1.5 billion 3-year green bonds and RMB 1.1 billion 5-year blue bonds.

This was the second issuance of bonds by the Shenzhen Municipal People’s Government but the first time that blue bonds were issued. The funds raised will be used for water pollution control projects. The issuance enriches the types of bonds in the offshore RMB bond market and enhances the vitality of the offshore RMB bond market. It provides investors with strong expectations of normalized issuances which will help promote long-term value investments in Shenzhen by the international capital market and improve the yield curve of local government bonds. The issuance will also enhance the close cooperation between Shenzhen and Hong Kong, strengthen the interconnection of financial markets in the Guangdong-Hong Kong-Macao Greater Bay Area and promote the construction of an offshore RMB center in Hong Kong.

w88win优德中文版 served as the domestic legal counsel to the People’s Government of Hainan Province and the Shenzhen Municipal People's Government. w88win优德中文版’s team  cooperated with the issuers in the preliminary preparations and communicated with the regulatory authorities. w88win优德中文版 carried out the domestic legal due diligence, the KYC document verification, the transaction document reviews and the issuance of PRC legal opinions. They assisted the issuers to successfully complete the issuance of offshore RMB bonds.

w88win优德中文版’s team was led by partners YU, Yongqiang (YY)andWANG, Jiangang with support from partners HUANG, WeiandYE, Junli for internal review.