Yunnan Investment Group recently issued $300million worth of debentures at the Stock Exchange of Hong Kong Ltd.. The issue was executed and completed on April 1, 2016.

A Dentons team acted as PRC legal counsel for the issuer. The team was responsible for structuring the debenture, conducting due diligence over its domestic entities and affiliates, reviewing the prospectus and transactional documents for the offshore issue, and issuing PRC attorneys’ opinion letter. The team included Kunming-based senior partner Zhou Yourong, Beijing-based senior partner Chen Yang, associates Li Jingnan and Bi Lan, and Kunming-based associate Li Yong and paralegal Li Siwen.

Yunnan Investment Group is the largest comprehensive investment group in Yunnan province and a solely state-owned enterprise. The issue was the first time Yunnan Investment Group sought finance from offshore bond market following the implementation of “Notice of National Development and Reform Commission on Promoting Offshore Corporate Debt Issuance Filing System” (No. [2015] 2044). It was also the first time a Yunnan-incorporated enterprise had issued US dollar-denominated debt in offshore market.

The US$300million debt had a maturity of three years. The Hong Kong branches of China Minsheng Bank and UBS and BOC International (China) Ltd. acted as joint-global coordinator, and the Hong Kong branches of China Minsheng Bank, UBS, BOC International (China) Ltd., the Hong Kong branch of SPD Bank, CCB International, and ANZ acted as joint lead managers.  Clifford Chance acted as offshore underwriter for the issue, while Junhe Law firm acted as domestic underwriter. Deacons advised the group on international legal issues.