By King & Wood Mallesons
King & Wood Mallesons (KWM) has advised Hong Yang Group Company Limited (Hong Yang) as their US, HK and PRC counsels on its offering of US$250 million 7.875% guaranteed senior notes due 2020. It is the debut international bond offering by Hong Yang and also the first bond transaction in which one global law firm provides legal advice under US, HK and PRC laws.
According to publicly available data, this transaction marks the 16th debut high yield bond issuance by a PRC company in the past 12 months, of which KWM’s HK-based US team has represented six, more than any other law firm in Hong Kong. Debut high yield transactions KWM advised on include:
- Fenghui Leasing – acted as issuer’s US and PRC counsels. First high yield bond issued by a PRC financial leasing company
- Fujian Yango – acted as issuer’s US counsel
- Xinhu Zhongbao – acted as issuer’s US and PRC counsels. Largest debut high yield bond issuance by a PRC company since January 2013
- China Grand Auto – lead managers’ US counsel. First non-property high yield perpetual offering.
- Hong Kong Express –issuer’s international counsel
- Hong Yang – acted as issuer’s US and PRC counsels
Commenting on the trend, Hong Kong-based partner Hao Zhou said, “Debut transactions requires commitment, innovation and creativity, as well as a deep understanding of our clients’ culture and businesses. We are delighted to be the go-to law firm in Hong Kong for debut high yield issuances by PRC companies. ”
“The volume and quality of bond issuances are a testament to the strength of our international DCM team, and commitment to excellence,” said Head of Hong Kong Banking & Finance Practice, Richard Mazzochi.
The KWM US team based in Hong Kong was led by partner Hao Zhou, supported by senior US associates Michael Lu and David Liao.