On April 17, 2017, State Grid Corporation of China ("State Grid") launched a USD 7.7 billion offshore medium-term note programme via a special purpose vehicle (SPV), State Grid Overseas Investment (2016) Ltd. established by its wholly-owned subsidiary, State Grid Overseas Investment Co., Ltd., on the British Virgin Islands. The company issued USD 5 billion worth of bonds to global investors on April 27, with an unconditional and irrevocable guarantee provided by State Grid for the medium-term note programme and bond issuance.
King & Wood Mallesons acted as the Chinese legal advisor to the issuer, with its partners ZHANG Yongliang and SONG Yanyan appointed as leaders of the advisors team. Herbert Smith Freehills acted as the international legal advisor to the issuer. Global coordinators of the deal are Citibank, HSBC, Bank of China, ICBC International, Morgan Stanley and Goldman Sachs. Commerce & Finance Law Firms acted as the Chinese legal advisor to the underwriters. Linklaters acted as the international legal advisor to the underwriters. Conyers Dill & Pearman acted as the Cayman Island legal advisor.
The project is the largest single-currency offshore bond issuance carried out by a Chinese state-owned enterprise, and sets a new record of issuance size among all bond issuance on the global public utility and Asia Pacific markets this year.