On October 23, Danyang Investment Group Co., Ltd. successfully issued RMB1.6bn of enterprise bonds for the purpose of financing shanty area rebuilding projects to the west of Chenghe Road, Danyang, Jiangsu province.

Haitong Securities acted as lead underwriter for the bonds while Dacheng acted as legal advisor for the issuer. The project was undertaken by a team led by Shanghai-based senior partner Wang Hanqi. The team has previously acted for the issuer in question on two batches of enterprise bond issue and is now advising it on medium-term note issue in the meantime.

Danyang Investment Group, established with approval from the local government, is a municipal SOE focused on the investment on and construction of municipal infrastructure. With total assets of about RMB28.6bn, it is the only investment and financing entity managing municipal assets and supporting urban construction in Danyang. The issue in question involves two types of bonds. The seven-year-term bonds, guaranteed by Sanxia Guarantee Group, will repay 20% of the principal from the end of the third year on to the seventh. The six-year-term bonds, guaranteed by Jiangsu Re-guarantee Co., will make repayment of 25% of the principal from the end of the thirdyear to the sixth.