On 19 August 2010, McDonald’s Corporation launched its Renminbi (RMB) bond offering in Hong Kong, which marked the first RMB bond issue by a multi-national company in Hong Kong. Simmons & Simmons is pleased to have advised the arranger in this landmark transaction.
The McDonald’s transaction is encouraging for global companies that wish to raise capital in RMB, and signifies yet another milestone for the development of the RMB bond market in Hong Kong since it opened in 2007. Prior to this, other than the recent issue by a Hong Kong based corporate, issuers of RMB bonds have been predominately PRC banks.
The Simmons & Simmons team was led by financial markets partner Sau-Wing Mak and consultant Kevin Tong.
Commenting on the transaction, Sau-Wing Mak said: “We are delighted to have advised on this transaction, not only is this the first RMB bond issue by a multi-national company in Hong Kong,but given the legacy of RMB capital raising exercises, this is the first RMB bond issue by a multi-national company in the world.”
Kevin Tong added: “We are committed to the development of the Renminbi bond market: last year we worked on another first for the market, the award winning debut offer of RMB retail bonds by a PRC incorporated subsidiary of a non-PRC bank”.
Simmons & Simmons is committed to the development of the RMB bond market in Hong Kong. Members of our team have extensive experience in this area having contributed to the opening up of this market in 2007 and worked on 9 out of the 14 Renminbi bond issues to date, including the McDonald’s Corporation issue and the recent retail issue by Bank of China Limited.
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