In July 2022, Xinjiang Zhongtai (Group) Company Limited ("Zhongtai Group"), as the issuer, issued China (Shanghai) Pilot Free Trade Zone ("FTZ") Offshore Bonds (the "Bonds") for the first time. The FTZ Branch of Bohai Bank provided an irrevocable standby letter of credit to enhance the credit of this offering. On 14 July 2022, the bonds were issued on the China (Macau) Financial Assets Trading Company Limited ("ASX") with a value of RMB 760 million, at an interest rate of 4.00% and for a term of three years.
Zhongtai Group was established in July 2012. Its core business revolves around "coal - thermal power - chlor-alkali chemical - viscose fiber - yarn" to create an integrated upstream and downstream circular-economy industry chain. For many years, Zhongtai Group has been the leading business in the PVC and viscose fiber sector. It is the largest cotton plant and processing enterprise in China and the largest BDO producer in the world. It has been consistently ranked in the "Top 500 Chinese Enterprises" for many years.
As the first free trade zone offshore bonds issued in the central and western regions of the country, this issuance creates a precedent for the introduction of foreign investors and the design of the overall transaction structure set many market precedents as well. JunHe acted as the international legal advisor to the underwriters and was the legal advisor to the trustee in this offering. The team drafted a full set of innovative transaction documents, conducted due diligence, participated in the negotiation of the transaction documents and arranged the closing. They also issued legal opinions and provided legal services on all the relevant issues involved in this project. JunHe assisted the company and the project team to resolve various technical difficulties and successfully complete this offering.
The lead partners of the project were YU, Yongqiang (YY), Tang Guangjun and Chris Tang.