On July 22, 2026, Shanghai Pudong Development Bank (SPDB) successfully issued 3-year RMB 3 billion in offshore Yulan bonds. SPDB’s Hong Kong branch was the issuer and the bonds had a coupon rate of 1.68%. 73 institutions of various types participated in the bond investment, such as foreign institutions in Hong Kong and Chinese overseas institutions and non-bank institutions, extending to Hong Kong, Macau, Singapore, South Korea, France, the UK, and other countries and regions. Several Southbound Connect investment institutions configured the Yulan issuance model for offshore bonds for the first time. This issuance was truly innovative as it marks the first listing of Yulan issuance model offshore bonds on both the Singapore Exchange and the Hong Kong Stock Exchange.
The Yulan Issuance Model offshore bonds are an innovative financial product jointly launched by the Shanghai Clearing House and Euroclear. The issuance relies on the interconnection of domestic and international bond market infrastructure. It not only facilitates overseas investors to participate in investments through their familiar international clearing systems but also provides convenience for Chinese issuers to issue bonds in international markets. It also introduces an investor information penetration identification mechanism (LEI), allowing issuers to query and understand underlying investor information, thereby enhancing promotion and optimizing post-issuance management. The successful issuance of these bonds lays a solid foundation for SPDB to carry out diversified financing arrangements, optimize liability and currency structures, and improve its global capital allocation capabilities.
JunHe was the international legal advisor and listing agent for this project and was responsible for updating the offering circular, reviewing the full set of transaction documents, issuing Hong Kong legal opinions and applying for the bond listing on the Hong Kong Stock Exchange and the Singapore Exchange. JunHe communicated and coordinated with all the parties, including the settlement bank, Shanghai Clearing House and Euroclear, and advanced the finalization and signing of the full set of transaction documents. They provided comprehensive legal services for the legal issues involved in this project. JunHe has extensive experience in the issuance of Yulan issuance model offshore bonds and the team earned high trust and unanimous recognition from the issuer, underwriters and the other intermediary institutions for their rigorous and efficient work style, solid professional service capabilities and meticulous and dedicated service attitude.
HUANG, Rongnan and SHI, Libin were the project leaders and partner Lee, Alex Jao JANG handled the project.
