The State Grid Corporation of China has issued RMB4 billion (USD557 million) in offshore RMB-denominated bonds through its British Virgin Islands (BVI) subsidiary on the HKEX, with Linklaters, King & Wood Mallesons (KWM), Conyers Dill & Pearman, Clifford Chance and Commerce & Finance Law Offices providing legal services.
On 13 June, State Grid Overseas Investment (BVI) Limited issued two tranches of dim sum bonds on the HKEX, each valued at RMB2 billion. The first tranche has a five-year maturity with a coupon rate of 2%, while the second tranche has a 10-year maturity with a coupon rate of 2.25%.
The State Grid served as the guarantor for the issuance.
The Bank of New York Mellon acted as the trustee, as well as the registrar and transfer agent. The Agricultural Bank of China, Bank of China and CITIC Securities served as joint global co-ordinators, bookrunners and lead managers, while China CITIC Bank International, DBS Bank, China Merchants Bank and Bank of Communications acted as joint bookrunners and lead managers.
Linklaters advised the issuer and guarantor on UK and Hong Kong law, with the legal team led by partners Lipton Li and Fang Min. KWM provided PRC legal advice, while Conyers Dill & Pearman advised on BVI law.
Clifford Chance counselled the joint arrangers and dealers on UK and Hong Kong law matters, while Commerce & Finance Law Offices provided PRC legal advice. Clifford Chance also advised the trustee and agents.
This transaction marks the inaugural issuance of 10-year offshore RMB bonds by a central state-owned enterprise (SOE) and is the largest and longest-term RMB bond issuance by a central SOE to date.
The State Grid is a state-owned power supplier in China and the largest utility enterprise in the world.
