Guantao advises Lingang Group on issuing the world's first offshore RMB social responsibility notes by a non-financial enterprise
In June 2024, Shanghai Lingang Economic Development (Group) Co., Ltd. ("Lingang Group") successfully issued RMB 800 million social responsibility notes (the “Notes”) in the overseas market. The Notes were listed simultaneously on The Stock Exchange of Hong Kong Limited (the “HKSE”) and the Luxembourg Stock Exchange (the “LuxSE”), becoming the first offshore RMB social responsibility bond by a non-financial enterprise in the world as well as the first social responsibility bond from China to be listed on the LuxSE.
JP Morgan and HSBC acted as the joint global coordinators for this issuance. The Notes will be due in 2027, with its interest rate being 3.15%. The interest on the Notes was the lowest level for the same type of Chinese-funded non-financial enterprise bonds over the same period in the recent ten years.
Lingang Group is a large-scale municipal state-owned enterprise group mainly engaging in park development, enterprise services and industrial investment. Through 20 years' efforts, Lingang Group has not only adhered to the interactive integration and simultaneous development of corporate development (ESG) philosophy and corporate governance (CSR) system, but also continuously conveyed its obligations and responsibilities in the fields such as social equity and public welfare undertakings in terms of building green parks, leading green industries, and green financial innovation. In 2023, Lingang Group was listed as No. 16 in the first batch of national SOEs' Social Responsibility · Vanguard 100 Index, and its subsidiary, Shanghai Lingang (600848.SH), was listed as No. 7 in the first batch of national SOEs' listed companies in the ESG · Vanguard 100 Index.
Guantao Shanghai acted as the PRC legal counsel for the issuer in this transaction, and provided legal services to the issuer throughout the transaction. Guantao team was led by partners Mr. Li Dequan and Mr. Chen Xiaochuang.
Main Contact (Mr. Li Dequan)
Mr. Li Dequan is the executive deputy director of Guantao Shanghai office, and a senior partner. With remarkable legal thinking and execution capabilities, Mr. Li has provided stable, reliable and high-quality legal services to numerous well-known central state-owned enterprises, large state-owned enterprises and multinational companies, and handled numerous large, complex and influential cases and transactions.
Relying on his deep professional knowledge and extensive experience, Mr. Li has been able to provide convincing professional guidance and high quality work for clients in complex legal issues and major projects, even in the face of complex and changeable legal environment.
Email：lidq@guantao.com
Main Contact (Mr. Chen Xiaochuang)
Mr. Chen is a partner of Guantao. Mr. Chen practices in the areas of capital markets, private equity and venture capital, M&A. Mr. Chen has extensive experience in overseas bond issuance by domestic enterprises. His representative deals in connection with overseas bond issuance include:
Sunny Optical Technology (Group) Company Limited (2382.HK) issued bonds in Hong Kong in 2018 and 2023, raising USD 600 million and USD 400 million respectively; Lingang Group issued free trade zone bonds in 2022, raising CNY 1,000 million and EUR 50 million; Aluminum Corporation of China issued bonds in Hong Kong in 2014, 2016, 2017, 2019, 2021 and 2022 respectively, raising USD 500 million, USD 800 million, USD 500 million, USD 750 million, USD 800 and USD 600 million respectively; Ji’an Chengtou Holding Group Co., Ltd issued notes in Hong Kong in 2021, raising USD 270 million; China Aluminum International Engineering Corporation Limited (2068.HK; 601068.SH) issued perpetual securities in Hong Kong in 2019, raising USD 350 million; Aluminum Corporation of China Limited (ACH.NYSE; 2600.HK; 601600.SH) issued senior perpetual capital securities in Hong Kong in 2013, 2014 and 2016 respectively, raising USD 350 million, USD 400 million and USD 500 million respectively; Financial Street Holdings Co., Ltd. (000402.SZ) issued guaranteed notes in Singapore in 2015, raising RMB 1.5 billion.
Email：chenxc@guantao.com
