In March 2019, Tengzhou Urban Construction Comprehensive Development Co., Ltd. (hereinafter referred to as "Tengzhou Urban Construction") carried out a non-public issuance of corporate bonds with a value of not more than RMB 1.4 billion to qualified investors. It is intended to be issued in tranches, with an issue period of not more than 5 years. The coupon rate will be determined by the issuer and the lead underwriter through negotiation within a predetermined range in accordance with the results of offline inquiry of qualified investors. The fund raised by these corporate bonds will be used for the construction of affordable housing projects after the deduction of the issuance costs.
Tengzhou Urban Construction, established in November 1984, is a state-owned enterprise. It is the parent company of Tengzhou Urban Construction Development Group, a wholly state-owned real estate development enterprise, a real estate development enterprise with first-class qualifications, and an enterprise with AA credit rating. It is also the earliest real estate development enterprise in Tengzhou City. With a registered capital of RMB 350 million and an annual development capacity of 300,000㎡, it is a controlling shareholder of four real estate development enterprises: Shandong Xinxing Real Estate Co., Ltd., Shandong Tianxingjian Real Estate Co., Ltd., Tengzhou Dongfang Zhongshi Real Estate Development Co., Ltd., and Tengzhou Oriental Shengdian Real Estate Co., Ltd. As of its inception, it has gradually evolved into a large-scale comprehensive real estate development enterprise with interests in commercial housing, commercial real estate, construction of urban public buildings, affordable housing and property management.
This project is one of the few corporate bond projects issued by state-owned enterprise through private placement in the market. The DeHeng team in Beijing, as the counsel for the issuer, led by the partner and lawyer Mou Hongbao, supported by lawyers Wang Ziheng, Wang Miao and associate Cheng Bin, provided professional legal services for the project.