International law firm Freshfields Bruckhaus Deringer has advised Shui On Development (Holding) Limited, one of China’s leading property developers on the issue of RMB3.5 billion (US$531 million) of four-year RMB denominated US$ settled senior notes. The Parent Guarantor for the issue is Hong Kong-listed Shui On Land Limited.
This is the second issue of an RMB offshore denominated bond for Shui On Development. The company issued its first such bond in the amount of RMB 3.0 billion (US$451 million) in December 2010. At that time Shui On Development was the first issuer to sell a synthetic offshore RMB bond in the public market.
The notes, which will be settled in US dollars, will have an annual interest rate of 7.625%, payable semi-annually. The net proceeds will amount to approximately US$520m and will be used to expand Shui On Development’s real estate operations.
“As the first issuer of synthetic offshore RMB bonds, Shui On helped create a market that has gained the interest of investors around the world,” explained Calvin Lai, partner at Freshfields. “At Freshfields, we are pleased to be in a position again to advise Shui On, our long standing client, on such an important transaction.”
Standard Chartered Bank served as the sole global coordinator. Deutsche Bank AG, Standard Chartered Bank, and UBS AG were the joint lead managers and bookrunners on the deal. While Barclays Capital and BNP Paribas served as co-managers.
The Freshfields’ team was led by US corporate partner Calvin Lai. The Hong Kong-based team included senior corporate associate Charles Ching, associate Dickson Ng and US corporate associate Shuekai Liang.
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