Zhengzhou Real Estate Group CO., LTD. (hereinafter referred to as "the Group") successfully issued three-year USD550 million senior unsecured bonds with a fixed interest rate of 3.95% on October 9, 2019. Bank of China and Haitong International Securities Group Limited serve as joint global coordinators, joint book managers and joint lead managers of the issuance and ABC International, China Everbright Bank Hong Kong, China Minsheng Bank Hong Kong and ICBC International, Orient Securities (Hong Kong) and Standard Chartered Bank acted as joint book managers and joint lead managers (hereinafter collectively referred to as "underwriters").
Zhengzhou Real Estate Group is a state-owned enterprise of Zhengzhou city, with registered capital of RMB2 billion. Its total assets totaled RMB119.978 billion by the end of 2018. It has eight wholly-owned subsidiaries and four holding subsidiaries and owns shares in another 10 companies. It is a comprehensive investment and industrial group mainly engaged in land consolidation, infrastructure construction, real estate development (construction and operation of affordable housing), and urban asset management. This was the first USD-denominated bond issuance by the Group. Fitch's rating of the issuer and expected rating of the bonds are both BBB +.
As the Chinese legal counselor for the underwriters, the DeHeng team was headed by lawyer Hou Zhiwei, partner of the Beijing Office, with primary support from Zhang Yan, Hu Xueyuan, Yang Jingjing, Xianyu Jiashan, Sun Yuehao and Wang Zhi. They worked closely with the issuer, underwriters and overseas lawyers to provide comprehensive, professional, efficient and premium legal services for the issuance.