Deacons advises on first offshore RMB bond issuance under new SAFE regulations

Deacons recently advised Bohai General Capital in relation to the issue of RMB1,000,000,000  6.40% Guaranteed Bonds due 2017, which are unconditionally and irrevocably guaranteed by Bohai Steel Group Co. The bonds are listed on the Hong Kong Stock Exchange.

Bohai Steel Group Co is the largest state-owned industrial enterprise in Tianjin in terms of total assets, total revenue, production scale and number of employees.

This is the first offshore renminbi bond issuance under the new regulations of the State Administration of Foreign Exchange of the PRC governing cross-border guarantees and security which became effective on 1 June 2014.

Linklaters acted as international counsel to the joint lead managers, Global Law Offices acted as PRC counsel to the joint lead managers and Grandall Law Firm acted as PRC counsel to the issuer.

Deacons partner Kevin Tong led on the transaction and was supported by associate Icarus Yuen.

Key Contacts

Kevin Tong

Partner | Corporate Finance

Email or call +852 2825 9229