Linklaters advises People’s Government of Guangdong Province of the People’s Republic of China on its first offshore bond issuance
Linklaters advised the People’s Government of Guangdong Province of the People’s Republic of China (Guangdong Provincial Government) on its inaugural 3-year RMB 2.2bn (approx. US$341m) offshore bond issuance, in the form of a RMB “lotus bond”. This is the first offshore bond issuance by the Guangdong Provincial Government and by a Chinese provincial government in Macao SAR. The bonds will be listed on, and cleared through, the Chongwa (Macau) Financial Asset Exchange (MOX).
This landmark transaction will further enhance the international recognition of Macao’s debt capital market, and encourage more financing and investment activity in the Macao financial market, including bond offerings by high credit Chinese corporate issuers.
Following the issuance of RMB 2bn government bonds in Macao by the Ministry of Finance in 2019 and the recent “dim sum bond” issuance by the Shenzhen Municipal Government in Hong Kong SAR, which was priced on 11 October, this first “lotus bond” issuance by the Guangdong Provincial Government will be another significant step to further enhancing the collaboration and market integration of Guangdong Province, Hong Kong and Macao in the Greater Bay Area.
The Linklaters team was led by Asia Managing Partner, William Liu and capital markets partners Michael Ng and Lipton Li, with support from managing associates Libin Shi and Allen Zhang.
Linklaters’ Asia Managing Partner, William Liu, commented:
“We are grateful for the trust and confidence that the Guangdong government has placed in us on this transaction. This strategic offshore RMB bond issuance represents a key milestone in the financial development in the Greater Bay Area and is likely to set a precedent for future offshore offerings by Chinese regional and local governments.”
Linklaters acted as the sole transaction and issuer’s international counsel on the Guangdong Provincial Government bond issuance, and as issuer’s international counsel on the recent Shenzhen Municipal Government bond issuance.
