Global law firm Ashurst advised Guangzhou Development District Investment Group Co., Ltd (Issuer) in relation to its debut issuance of offshore bonds, in the aggregate principal amount of US$400 million. The Bonds are listed on the Hong Kong Stock Exchange, the Chongwa (Macao) Financial Asset Exchange Co., Ltd. and the Singapore Exchange Securities Trading Limited. Ashurst acted as counsel to the Issuer as to English law, as well as listing agent for the HK and Macao listings of the Bonds. The net proceeds from the issuance will be used for financing of eligible sustainability projects of the Issuer group and for related working capital purpose.
Guangzhou Development District Investment Group is a leading state-owned industrial investment and operation platform in Guangzhou Development District, Guangzhou, Guangdong Province and is the only transportation infrastructure investment and construction platform in the Guangzhou Development District.
The Bonds are being issued as "sustainability bonds" under the sustainable finance framework. This is the first offshore USD 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 given to state-owned enterprises in South China. The Bonds are assigned a rating of "BBB+" by Fitch.
Lead partner Melody He commented: "We are pleased to act for Guangzhou Development District Investment Group Co., Ltd on their debut public offshore USD bonds and work together with the joint lead managers to bring the transaction to a successful completion. As the first sustainability bond offering from Guangzhou, this offering is a significant offering by a leading SOE in South China. We look forward to more opportunities to work together with the Company to support its continuous growth, as well as opportunities to work with underwriters and other PRC issuers on more precedent-setting international offerings."
Lead partner Jessica Li added: "We are very honoured to participate in 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 due to it being the very first sustainability USD bond offering of Guangzhou. We are looking forward to assisting issuers and underwriters in future similar transactions and make our contribution to ESG financing by Chinese SOEs, especially those located in the Great Bay Area of China, in the international capital market."
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.
