Herbert Smith Freehills Advises China New Town Development on RMB1.3 Billion Notes Issuance in Hong Kong

Herbert Smith Freehills is pleased to announce that the firm has advised China New Town Development Company Limited (“CNTD”) on a CNY1.3 billion notes issuance on the Hong Kong Stock Exchange.

The 5.5 percent senior guaranteed notes due 2018 were issued by CNTD’s wholly-owned special purpose vehicle entity, China New Town Finance Limited, with the benefit of a Keepwell and Liquidity Support Deed and a Deed of Equity Interest Purchase Undertaking by China Development Bank Capital Corporation Limited (“CDBC”).

Proceeds from the issuance will be used for general corporate purposes.

CNTD, which is listed in both Hong Kong and Singapore, focuses on planning and developing large-scale new town projects in the PRC. It is the primary overseas subsidiary of CDBC engaged in urban development projects.

BOCI Asia Limited, CITIC Securities Corporate Finance (HK) Limited, Guotai Junan Securities (Hong Kong) Limited, ABCI Capital Limited, Agricultural Bank of China Limited Hong Kong Branch, Bank of Communications Co., Ltd. Hong Kong Branch and Haitong International Securities Company Limited were Joint Lead Managers on the transaction.

The Herbert Smith Freehills team on the deal was led by Hong Kong partner Kevin Roy, who was supported by senior associate Jackie Chen and associate Fei Mo. Senior associate Ruth Lau and associate Eugene Lau led on the Hong Kong Stock Exchange listing related matters for this transaction.

Kevin commented:

“We would like to congratulate China New Town Development on its successful notes issuance, which represents a breakthrough in its offshore financing and shows the level of investor confidence in the company’s portfolio of projects. Hong Kong’s debt capital markets have experienced substantial growth in the past few years. The wide range of product offerings and open access for issuers and investors, and the increasing significance of offshore RMB bond issuances in Hong Kong, make Hong Kong’s debt capital markets one of the most liquid and active international markets in the region.”

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