In December 2018, People’s Republic of Hungary (“Hungary”) issued RMB 2 billion panda bonds in China with tenor of 3 years. The bonds were actively subscribed by onshore and offshore investors. The final coupon rate was 4.30%, and the offshore orders totaled RMB 390 million.

The bonds is Hungary’s second issue of Renminbi bonds on the China Interbank Market after its inaugural issue in July 2017. The proceeds will be used as the issuer’s general funding, which might include supporting to the Belt and Road Initiatives relevant projects.

King & Wood Mallesons (“KWM”), as the PRC counsel to the issuer, advised and assisted Hungary on all aspects of the offering including drafting and preparation of the offering circular and other relevant offering documents in Chinese and English. This demonstrated KWM’s strengths in providing quality and professional services in panda bond offerings.

The KWM team for this transaction is led by the partners Yingmao Tang and Stanley Zhou.