King & Wood Mallesons has represented the Republic of Portugal on its issuance of 2 billion yuan ($290 million) of panda bonds, the first sovereign debt sale on China’s bond market by a eurozone country. Global Law Offices advising the lead joint underwriters.

Panda bonds are yuan-denominated debt from a non-Chinese issuer that is sold in China. The bond’s proceeds will be used for a variety of governmental purposes, including supporting certain Belt and Road Initiatives in the future. China is currently the largest non-European foreign investor in Portugal. 

Portugal’s issuance was the third by an EU country after Poland and Hungary issued renminbi-denominated debt in 2016 and 2018, respectively.

The KWM team was led by Hong Kong-based partner Richard Mazzochi, Beijing-based partner Yingmao Tang and Shanghai-based partner Stanley Zhou.

The GLO team advising the lead joint underwriters on PRC law was led by Beijing-based partners Xin Zhang and Li Zhu.

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