China Petrochemical Corporation (also known as Sinopec Group) raised HKD7.75 billion (USD1 billion) from the issuance of exchangeable bonds via a subsidiary in one of the largest deals of its kind by a Chinese company in recent years. Haiwen & Partners, Linklaters and JunHe advised the issuer and lead manager.
Sinopec appointed Haiwen & Partners to act as both its PRC and international legal counsel. Partners Li Liping, Gao Wei and Xu Min were members of the PRC legal advisory team. The Hong Kong law advisory team included partners Fu Duan and Isaac Chen.
Linklaters advised the lead manager, Goldman Sachs, on Hong Kong and English law, with the team comprising partners Yu Hanwen, Ki Taiki and Fang Min. JunHe partners Zhang Ying and Sun Fengmin counselled on PRC law.
Sinopec’s subsidiary Deep Development 2025 issued the seven-year bonds with an interest rate of 0.75% and an exchange price of HKD6. Sinopec Group acted as the guarantor of the bonds. This is Sinopec’s first exchangeable bond offering and it aimed to refinance offshore indebtedness.
Another major exchangeable bond deal this year was Baidu Group’s issuance of USD2 billion exchangeable bonds in March.
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Firms act on China tech giant Baidu’s RMB10bn offshore bonds
Skadden, Han Kun Law Offices, Jingtian & Gongcheng and Davis Polk have assisted Chinese technology giant Baidu in completing its first offshore reminbi bond issuance, totalling RMB10 billion (USD1.48 billion)
For more stories about Baidu, visit law.asia.
