Linklaters advises on the issuance of US dollar fixed rate bonds and Euro floating rate bonds by Guotai Junan Securities

Linklaters acted as international counsel to the underwriters, on the successful offering of US$500 million bonds (“US Dollar Bonds”) by an overseas subsidiary of, and guaranteed by, Guotai Junan Securities Co., Ltd and (“Guotai Junan Securities”) and a separate direct offering of €255 million bonds (“Euro Bonds”), by Guotai Junan Securities. The US Dollar Bonds and the Euro Bonds were issued a day apart, and both transactions are listed on the Hong Kong Stock Exchange. The US Dollar bonds, which are due in 2022 with an interest rate of 3.875% p.a., received a Standard & Poor's BBB + rating and the Euro Bonds received a Moody's Baa1 rating.

 

Guotai Junan Securities is a comprehensive financial service provider who is a leader in terms of its long-term, sustained and leading business operations in the financial industry. Its shares are listed on both the Shanghai Stock Exchange and the Stock Exchange of Hong Kong.

 

The underwriting consortium formed for the issuance of the US Dollar Bonds comprised of, Guotai Junan International, HSBC, Industrial and Commercial Bank of China, SPDB International, CCB International, BOSC International and the joint global coordinator Bank of China. For the Euro Bonds, the underwriting consortium comprised of, Guotai Junan International, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Shanghai Pudong Development Bank Hong Kong Branch, CMB Wing Lung Bank Limited and the joint global coordinator Standard Chartered Bank.

The Linklaters team was led by partner, Michael Ng and counsel, Hanwen Yu, and supported by associate, Xiaoming Zhong and PRC advisor Jessica Zhou.

Partner Michael Ng commented:

“The two bonds were issued in two days, in dual currency, through different issuance structures and featured different interest accruals. We were able to fully mobilise our internal resources within a short timeframe and delivered solutions for the different requirements for these two bond issues. This is a testament to the experience Linklaters’ has in advising securities companies and financial institutions in China”