Herbert Smith has advised the Export-Import Bank of China (China ExIm Bank) on its issuance of bonds worth four billion yuan ($635 million) in Hong Kong. The bonds were more than four times over-subscribed, as investors continue to hunger for yuan assets despite recent concerns about weak yuan appreciation in the future.
The bonds, to be issued on April 5, include a tranche of three billion yuan ($476 million) two-year bonds with a 2.7 percent coupon, and a tranche of one billion yuan ($159 million) three-year bonds paying 2.9 percent interest.
This was ExIm’s fourth yuan bond issue in Hong Kong, after sales in 2007, 2008 and 2010 respectively.
Linklaters advised Bank of Communications as the issuing and lodging agent.
Corporate partner Tom Chau led the Herbert Smith team in advising on the Hong Kong law aspects of the transaction. The U.S. securities team was led by partner Kevin Roy, while dispute resolution partner Mai Tai also advised on the transaction.
“We are delighted to have had the opportunity to work with China ExIm Bank on this significant bonds issuance,” said Chau in a statement.
Headquartered in Beijing, China ExIm Bank is solely owned by the Chinese government, and is the only government export credit agency in mainland China. ALB
Kanishk Verghese is North Asia journalist at ALB. Follow him on Twitter: @ALB_Magazine.
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