Mayer Brown JSM Advises Beijing Enterprises Water Group Limited on RMB 1.45 Billion Dim Sum Bond

Wednesday, July 6, 2011
Tags:  Mayer Brown LLP | Beijing
Mayer Brown JSM’s finance and corporate groups advised Beijing Enterprises Water Group Limited (BEWGL) in connection with an issue of 1 billion 3.75% senior Renminbi denominated bonds due 2014 and 450 million 5.00% senior Renminbi denominated bonds due 2016 by the company.

BEWGL is a Hong Kong-listed holding company backed indirectly by the Beijing Municipal Government. Its business focuses on water and water treatment in Beijing and other parts of Mainland China. 
The deal, arranged by BofA Merrill Lynch, DBS Bank Ltd., Goldman Sachs (Asia) L.L.C., Macquarie, Morgan Stanley and Standard Chartered Bank (Hong Kong) Limited, was completed on 30 June 2011. 
The net proceeds from the issue of the “dim sum” bonds will be remitted as shareholder loans to support the financial capital expenditure and general working capital of the issuer’s PRC subsidiaries.
Jeckle Chiu, partner of Mayer Brown JSM, said: “We are very happy and honoured to have worked on this transaction with Beijing Enterprises Water Group Limited. We have a long-standing working relationship with the Beijing Enterprises group of companies, and this is the second capital markets transaction we have closed for them this year. RMB bonds are no doubt one of the most popular products in the capital markets recently, and continue to gain interest in Asia as well as from the Americas and Europe. This transaction once again demonstrates our ability to service clients with the latest know-how in capital markets transaction.” 
Ben Sandstad, partner of Mayer Brown JSM, said: “Beijing Enterprises Water Group Limited issuance, which was split into two tranches to provide optimum pricing and funding tenor, shows that despite some recent volatility in the RMB bond market, there is demand for paper from quality issuers.” 
The Mayer Brown JSM team was led by corporate finance partners Ben Sandstad and Jeckle Chiu. 
Mayer Brown JSM also advised Beijing Enterprises Holdings Limited (BEHL) earlier this year in connection with the issuance of US$1 billion investment grade debt. For more information of this transaction, please refer to the press release here.