16 November, 2016
King & Wood Mallesons (KWM) has advised China Nuclear Engineering Group Co. (CNEC), a PRC state-owned enterprise under the direct supervision of the State-owned Assets Supervision and Administration Commission of the State Council of China (SASAC), on its debut bond offering in the international capital markets.
KWM acted as CNEC’s international and PRC counsel on the offering of RMB1.5 billion 4.30% guaranteed bonds due 2019, which is issued through an SPV, CNI Capital Ltd., and guaranteed by China He Investment (HK) Ltd., one of CNEC’s subsidiaries with the benefit of a keepwell and equity interest purchase and liquidity support undertaking provided by CNEC.
CNEC is engaged primarily in nuclear projects, national defence projects, nuclear power plants and other industries and civil project construction.
According to the Global Capital database, this transaction is the fourth “dim sum bond” issued by a PRC corporate issuer in 2016, out of which KWM has advised three. Previously also in this year, KWM acted as issuer’s international counsel in Haikou Meilan International Airport’s CNH bond offering and as joint lead managers’ PRC and international counsel in Chongqing Grain Group’s CNH bond offering.
The KWM team was led by Hong Kong-based partner Hao Zhou, supported by senior associate Michael Lu, and the PRC team was led by Beijing-based partner Song Yanyan.
