Baker & McKenzie recently advised its long-standing client, Yuexiu Group, on two significant debt capital market transactions, namely:
- Yuexiu Property Company Limited (“Yuexiu Property”) on the establishment of its first medium term note programme (“MTN Programme”). The size of the MTN Programme is US$2 billion. The notes that were issued on the first drawdown amounted to US$850 million in aggregate and comprised of US$350 million 3.25% notes due 2018 and US$500 million 4.50% notes due 2023. Bank of China (Hong Kong) Limited, BOCI Asia Limited, DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited and Morgan Stanley & Co. International plc acted as the joint lead arrangers for the MTN Programme. Together with Yue Xiu Securities Limited, they acted as dealers for the first drawdown. The notes have been rated Baa3 by Moody’s and BBB- by Fitch.
- Yue Xiu Enterprises (Holdings) Limited (“Yue Xiu Enterprises”) on its third note issuance: HK$1 billion 5.65% corporate notes due 2018. The notes were purchased by Industrial and Commercial Bank of China (Macau) Limited and Agricultural Bank of China Limited Hong Kong Branch. Société Générale, ICBC International and Agricultural Bank of China Limited Hong Kong Branch acted as joint lead arrangers.
Baker & McKenzie’s Hong Kong and Beijing offices also acted for Yue Xiu Enterprises on its initial issuance and private placement of HK$1 billion 6.4% notes due 2019 in December 2011, as well as on its follow-on issuance of HK$1 billion 6.4% notes due 2020 and private placement in April 2012. Both sets of notes were purchased by China Life Trustees Limited.
The multi-disciplinary Baker & McKenzie teams that advised on these transactions were led by Dorothea Koo, a corporate partner based in Hong Kong. The team for the Yue Xiu Enteprises note issuance also comprised of Beijing-based banking & finance partner, Simon Leung, as well as Hong Kong-based associates Christopher Shen and Christine Zhao. Christopher Shen and Christine Zhao also worked on the MTN Programme. Other team members include Brian Spires (a US securities partner), Tracy Lam (a special counsel in the corporate group), Janice Wong and Isabelle Wu (both associates in the corporate group).
Commenting on the deals, Dorothea Koo said, “Over the past few years, we have been privileged to work with Yuexiu Group, a long-standing client of the Firm, on a number of landmark deals including advising Yuexiu REIT on its investment in Guangzhou International Finance Center. Our role in the MTN Programme and Yue Xiu Enterprises’ third note issuance further reinforces our close working relationship.”
Baker & McKenzie has been involved in a number of recent debt capital markets deals, including advising Regal REIT on its US$1 billion medium term note programme; Champion REIT on its US$1 billion guaranteed medium term note programme; Cheung Kong (Holdings) Limited and its wholly-owned subsidiary, Cheung Kong Bond Securities (03) Limited (“CKBS”), on the issue and offering by CKBS of US$500 million 5.375% guaranteed senior perpetual securities; Cheung Kong (Holdings) Limited and its wholly-owned subsidiary, Cheung Kong Bond Securities (02) Limited (“CKBS”) on the issue and offering by CKBS of HK$1 billion 5.25% guaranteed senior perpetual securities; advising the joint bookrunners and the trustee, on the issuance by China ITS (Holdings) Co., Ltd of RMB210 million 10% guaranteed bonds due 2015; advising China South City Holdings Limited on its issue of US$125 million 13.50% senior notes due 2017; advising the issuer, CFG Investment S.A.C., an indirect wholly-owned Peruvian subsidiary of China Fishery Group Limited, on its US$300 million offering of 9.75% Senior Notes due 2019; Yanzhou Coal Mining Company Limited on its US$1 billion Notes issue; Li Ning Company Limited on its RMB750 million convertible bonds issue; and advising China WindPower Group Limited on its RMB750 million guaranteed bonds issuance.
