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Zhong Lun Advises on the First MOX Listed Public Company Bonds Issuance by Huafa Group
Zhong Lun Advises on the First MOX Listed Public Company Bonds Issuance by Huafa Group
Release time：2019-12-17
Voice Announcements
On December 13, 2019, Huafa 2019 I Company Limited successfully issued Macau listed public company bonds (Stock Code:MOXIB1019003, referred to as "the Bond Issuance"). It was the first time that ChongWa (Macao) Financial Asset Exchange Co., Ltd. (referred to as "MOX") issued public company bonds after the Macau Government had issued the Guidelines for the Administration of Corporate Bond Issuance and Transaction Transfer. The 3.7 per cent. Guaranteed Bonds in the aggregate principal amount of US$200,000,000 unconditionally and irrevocably guaranteed by Huafa Group were actively subscribed by domestic and foreign institutional investors on the day of issuance. The total subscription amount amounts to nearly US$730,000,000, and the oversubscription rate reached 365%. The bond issuance was a benchmark for the development of MOX, as it has broadened the channels for global companies to issue public company bonds and constituted an important part of expanding the Macau bond market and promoting the development of the Macau international capital market.
Zhong Lun Law Firm acted as the PRC counsel to the managers and provided full legal services for the bond issue. Through efficient communication and close cooperation with Huafa Group and other intermediaries, we completed the drafting of the prospectus, legal due diligence, and legal opinions with high-quality. The project team was led by partners Hui Yang and Victor Chen, with support from associates Tina Lan and Jiayun Guo.
Founded in 1980, Huafa Group which is one of the two leading state-owned enterprises in Zhuhai has the same age as the Zhuhai Special Economic Zone. It is the largest comprehensive enterprise in Zhuhai as well as a well-known leading enterprise in the whole country. It has been ranked among the Top 500 Chinese Enterprises for four consecutive years since 2016, and it ranked 330th in 2019. It also appeared in the Top 500 Guangdong Enterprises and ranked 43th.
