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Zhong Lun Advised Blackstone on HEC Pharm’s H-share Convertible Bonds

Release time：2019-02-25 Voice Announcements

On February 20, 2019, YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (“HEC Pharm", 01558.HK) announced that it had closed the issuance of H-share convertible bonds in the amount of US$400 million to Blackstone. This transaction is a milestone, being the first private placement of H-share convertible bonds in more than a decade.

HEC Pharm is a PRC pharmaceutical manufacturing company which focuses on the development, manufacturing and sale of pharmaceutical products in the therapeutic areas of anti-virus, endocrine and metabolic diseases and cardiovascular diseases. Its H shares have been listed and traded on the Main Board of the Hong Kong Stock Exchange since 2015. In 2018, A-share listed Guangdong HEC Technology Holding Co. Ltd. (600673.SH) acquired all the domestic shares in HEC Pharm through a material asset restructuring and became the controlling shareholder of HEC Pharm.

Zhong Lun Law Firm formed an interdisciplinary legal team, which was led by Anthony Zhao, and acted as the PRC legal counsel to Blackstone throughout this transaction. Within the team, Yonghui Yu, John Shen, Jane Li, Lindsay Zhang and Hailiang Jia were responsible for the legal matters in relation to private equity investments, and onshore and offshore capital markets; Helen Cheng and Samuel Zhang were responsible for the legal matters in relation to IP rights and pharmaceutical industry; Scott Yu, Mingjun Chang, Maria Hou and Jason Cheng provided support in their respective fields of expertise; and Summer Huang, Lindsay Zhang, Cynthia Yuan, Fulei Su and Shuman Zhang also actively participated in this transaction.

This transaction covered both H-share and A-share markets, and two different regulatory regimes from onshore and offshore; and it also involved the approval, registration and filing procedures with several governmental authorities, including CSRC, NDRC and SAFE. Thus, it required the PRC counsel not only to explore the feasibility of various initiatives, but also to ensure the practical details for the seamless execution. The successful closing of this transaction demonstrates Zhong Lun’s strong capability in providing clients with comprehensive legal services when dealing with complex pioneer projects.

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Zhong Lun Advised Blackstone on HEC Pharm’s H-share Convertible Bonds