11 August, 2016
King & Wood Mallesons (KWM) has advised Fenghui Leasing Co. Ltd. as US and PRC counsels on its offering of US$150 million 7.875% guaranteed notes due 2019. It is the first high yield bond issued by a PRC financial leasing company and a landmark transaction for both the issuer, as its debut international bond offering, and for KWM, as the first ever international law firm to act as both US and PRC counsel in a bond issuance.
Fenghui Leasing is one of China’s leading financial leasing companies providing financing solutions for high-end smart equipment, medical equipment, transportation equipment, environmental protection equipment, public utility construction equipment as well as operating lease solutions.
Commenting on the deal, partner Hao Zhou said, “The combination of our local depth and international track record and capability in the high yield space makes us clients’ law firm of choice for transactions of this type. We have observed a significant increase in high yield momentum and look forward to more high yield issuances in the second half of 2016.”
The KWM international team was led by Hong Kong-based partner Hao Zhou, supported by senior associate David Liao. The KWM PRC team was led by Beijing-based partners Yanyan Song and Han Jie.
