In July 2022, Zhangzhou Jiulong River Estuary Group Co., Ltd. (“Jiulong River Estuary Group”) issued 3-year USD 500 million senior unsecured sustainability-linked offshore bonds with a coupon of 4.7%. These are the first sustainability-linked offshore bonds issued by a non-financial enterprise in Fujian Province. The issuance was well received by international investors with an oversubscription ratio of 2.6 x. Final pricing for this bond was tighter than the initial price guide, resulting in the coupon rate being far lower than that of similar bonds of the same type of enterprises.
Jiulong River Estuary Group is an important participant in the industrial investment and fundraising projects of Zhangzhou Municipality Government, and the parent of multiple listed companies including Pientzehuang (600436.SH) and Longxi Bearing (600592.SH). These companies manufacture Chinese traditional medicine and bearings and participate in investments in the development of Zhangzhou Industrial Park and industrial projects therein. Pientzehuang is the sole owner of “Pien Tze Huang”, a traditional Chinese herbal formula under national class 1 protection, whose production process and prescription are protected and enlisted in the National List of Intangible Cultural Heritage as traditional craftsmanship.
JunHe acted as the Chinese legal counsel for the underwriter in this project. After overcoming numerous challenges including global economic uncertainty and the COVID pandemic, JunHe provided in-depth and meticulous legal services, including issuing legal opinion on Chinese law, assisting the client in the internal and external approval process, and reviewing the transaction documents.
The JunHe team was led by partner YU, Yongqiang (YY), and internally reviewed by partner CHEN, Yan.