Eversheds Advises New World China Land on the Biggest Corporate Dim Sum Bond Issue in History

Friday, April 20, 2012
Tags:  Eversheds Sutherland | Hong Kong
International law firm Eversheds has advised New World China Land Limited (NWCL) on the biggest corporate dim sum bond issue ever, raising a total of CNY 4.3 billion.

The transaction was completed in two stages, with a CNY 2.8 billion debut issuance immediately followed by a re-tap issuance of CNY 1.5 billion amidst overwhelming investor interest. Both tranches were consolidated to form a single series. The Regulation S deal was priced at 8.5% for a three-year tenor due 2015. The re-tap issuance was sold with a premium at 100.972%. The bonds are listed on the Hong Kong Stock Exchange. Lead managers for the transaction are BOC International and HSBC. The initial issuance was completed on 11 April 2012, and the re-tap issuance closed on 19 April 2012.
The Eversheds team was led by Kingsley Ong, Partner, Debt Capital Markets, and Stephen Mok, Partner, Head of Corporate, and supported by Dennis Fong, Janice Yip, Catherine Chun, Karen Wang, Sandy Yeung and May Tse.
The offering benefited from some unique structural support features including a letter of support from parent New World Development Company Limited (NWD), as well as two put options for bond investors. Apart from being the largest dim sum bond issue of all time, this was also the first debt issuance by NWCL, and the first offshore Renminbi bond by a property developer this year. This is only the third time in history that a re-tap of the dim sum bond market immediately after an initial issuance has ever been done.
Stephen Mok said:
“We are honoured to continue our business relationship with NWCL. Having advised NWCL on all of its recent equity offerings and major corporate acquisitions, we are very excited to assist NWCL on its first major debt offering of late, which is also the largest corporate dim sum bond issue in Hong Kong. The funds raised will help NWCL continue on its strategy for expansion.” 
Kingsley Ong said:
“We congratulate NWCL on its overwhelmingly popular debt offering. With the bonds heavily oversubscribed and sold at a premium, the demand of this offering goes beyond just general investor interest in offshore RMB bonds – it reflects market confidence in NWCL and the New World group.” 
Eversheds has previously advised NWCL on a rights issue to raise up to HK$4.3 billion in December 2011, and the New World group on a string of fundraising transactions and acquisitions.