15 September, 2017
King & Wood Mallesons (KWM) has advised Weichai Power Co., Ltd. (Weichai Power) as its international counsel on its USD775 million 3.750% senior perpetual bonds offering. The bonds are issued by Weichai International Hong Kong Energy Group Co., Limited, a wholly-owned subsidiary of Weichai Power and unconditionally guaranteed by Weichai Power.
This transaction marks Weichai’s debut perpetual bond offering in the international bond market, as well as the largest perpetual bond offering ever by a PRC company.
Commenting on the transaction, partner Hao Zhou said, “We are delighted to once again have had the opportunity to represent Weichai Power on its major bond offerings. We advised Weichai Power on its debut international bond issue back in October 2015. Many PRC companies are now looking into the perpetual securities market as an alternative way of financing for deleveraging and other capital management purposes.”
The KWM team was led by Hong Kong-based partner Hao Zhou, supported by senior associate Michael Lu and associate Allen Zhang.
Weichai Power is one of the leading manufacturers of automotive and equipment products in China. It is ranked no. 1 in domestic sales of engines for use in heavy-duty trucks in China and is the largest supplier of diesel engines used for heavy-duty trucks and wheel loaders with a load capacity of five tonnes in China. The Group is considered as one of the most important state-owned enterprises in Shandong Province and the backbone of Shandong’s industrial development.
